Lightyear Capital Closes Sale of Alegeus to Vista Equity Partners
NEW YORK--Lightyear Capital LLC (“Lightyear”), a New York-based private equity firm focused on financial services investing, today announced the completion of the sale by its affiliated funds of Alegeus, the market leader in consumer directed healthcare, to Vista Equity Partners (“Vista”). Lightyear completed a carve-out of Alegeus from FIS, a global leader in fintech, in 2012. Terms of the transaction were not disclosed.
Alegeus quickly established itself as the market leader, with a powerful white-label platform that manages benefit account administration, consumer engagement, and payment processing for consumer directed healthcare accounts, such as HSAs, FSAs, and HRAs. Alegeus supports more than 30 million consumer lives and 225,000 employer groups, and processes more than $9.1 billion in healthcare payments annually.
"In keeping with Lightyear’s pursuit of opportunities to create value in exceptional businesses at the intersection of healthcare and financial services, we worked closely with the Alegeus team to enhance their value proposition to clients and consumers by investing in product and to accelerate sales," said Mark Vassallo, Managing Partner of Lightyear. "We’ve been delighted to collaborate with the entire management team to establish Alegeus as an independent company – a true leader in the consumer directed healthcare industry – and to ensure the company is well positioned for future success."
"We have enjoyed partnering with Lightyear for the past six years," added Steven Auerbach, CEO of Alegeus. "As consumers continue to assume greater financial responsibility for their healthcare, we are committed to providing solutions and personalized engagement to help them get the best value for their healthcare dollars. Lightyear helped us establish a strong platform in the consumer directed healthcare space, allowing us to capitalize on this rapidly growing market. We are well positioned to continue our momentum in our next phase of growth with Vista."
About Lightyear Capital LLC
Founded in 2000, Lightyear Capital is a financial services-focused private equity firm based in New York. Through its affiliated private equity funds, Lightyear makes primarily control investments in North America-based, middle-market companies across the financial services spectrum, including asset and wealth management, banking, brokerage, healthcare financial services, insurance, payments and processing and specialty finance. The firm brings focus and discipline to its investment process, as well as operating, transaction and strategic management experience, along with significant contacts and resources beyond capital. For more information, please visit www.lycap.com