Genstar Capital, a private equity firm based in San Francisco, has acquired Evolution Benefits, a provider of benefit card payment services for healthcare and employee benefits accounts.
Financial terms were not disclosed.
Evolution Benefits serves approximately 3.5 million people throughout the US. The company’s patented technology allows consumers to access their funds in flexible spending accounts, health reimbursement accounts, health spending accounts and qualified transportation accounts through special purpose prepaid Visa or MasterCard cards.
Genstar is a middle market private equity firm that focuses on investments in selected segments of the healthcare, financial services, software and industrial technology industries.
Evolution Benefits’ chairman and chief executive Robert E. Patricelli and the entire senior management team will remain with the company.
Patricelli says: “We have built a strong company and our leadership in the healthcare payment services sector is founded on our technology and customer service. The addition of new capital by Genstar, plus its team of experienced investment professionals and operating executives, will be very helpful to us in developing new products, making acquisitions, and growing the size of the company. All of our customers and business partners should welcome this expansion of our capabilities under the leadership of the management team they know well.”
James Nadauld, a principal of Genstar, adds: “The investment in Evolution Benefits represents a convergence of Genstar’s specialisation in both the healthcare services and electronic payments verticals. We believe strongly that Evolution Benefits is poised for continued growth as consumers and employers continue to migrate towards consumer-directed health products enabled by debit cards rather than manual submission of healthcare claims.”
