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Lightyear Capital acquires Healthcare Benefit Solutions

New York-based private equity firm Lightyear Capital, has acquired Healthcare Benefit Solutions from Fidelity National Information Services (FIS) in a deal worth USD335m.

“FIS has built a market leading position in healthcare account processing and payment services, and this business continues to perform very well,” says Gary Norcross, president and chief operating officer of FIS. “TripleTree was retained to help us understand the considerations associated with the healthcare business. We ultimately made a decision to divest of the business. TripleTree provided us with good alternatives as our advisor and was a solid partner throughout the engagement until closing. The divestiture is consistent with our primary focus to serve financial institutions, as well as our strategy to maintain leadership positions in markets where we have meaningful scale.”

“We found a great home and investor for this business, enabling the company to maintain its leadership position and continue growing to meet the evolving needs of the industry,” says Scott Tudor, managing director at TripleTree. “We are very pleased that we were able to position the new company for future success while enabling a continued focus on serving financial institutions for FIS.”

The new company has been renamed and will operate as Alegeus Technologies. It specialises in benefits administration and payment processing for consumer directed healthcare accounts. Robert Natt will be Alegeus’ full time executive chairman and Thomas Torre will be its chief executive officer.

“We are extremely excited to add Alegeus to our portfolio of high-quality, market-leading companies in the financial services space,” says Donald B. Marron, chairman of Lightyear. “There is tremendous opportunity to grow and expand this business, and we look forward to working closely with Bob Natt, Tom Torre and the rest of the Alegeus team to invest in the talent and technology which will extend its leadership in consumer directed healthcare.”

TripleTree acted as the exclusive adviser to FIS in connection with the transaction.

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