Vista Equity Partners to Acquire Leading Consumer Directed Healthcare Firm Alegeus
Published on August 7th, 2018
Alegeus, the market leader in consumer-directed healthcare (CDH) solutions, today announced that Vista Equity Partners (Vista) has signed a definitive agreement to acquire Alegeus from investment funds affiliated with Lightyear Capital LLC (Lightyear), a New York-based private equity firm investing in financial services companies. Vista is a market-leading private equity firm that invests in, empowers and grows software, data and technology companies that are reinventing industries and catalyzing change. Lightyear Fund III, L.P., along with other investors, acquired Alegeus in August 2012.
Alegeus joins Vista with a strong track record and significant market opportunity ahead. As consumers continue to absorb greater financial responsibility for their healthcare, consumer directed healthcare accounts – such as HSAs, FSAs, and HRAs – will continue to be a mission-critical solution for consumers and employers to get better value for their healthcare dollars. More than 350 clients – including leading health insurance plans and third-party administrators – leverage Alegeus’ deep expertise and proven technology to deliver innovative, account-based benefit programs for more than 225,000 employers and 30 million consumers.
Our clients operate in a highly competitive marketplace, and their success hinges on ensuring that they have the best solution that enables them to differentiate and win – today and tomorrow,” said Steven Auerbach, Alegeus CEO. “Vista has a proven track record of helping companies unlock their next phase of growth by expanding innovation. This acquisition offers Alegeus an incredible opportunity to leverage Vista’s strategic and operational expertise, portfolio of resources, and strategic investment capital to continue to innovate and scale our platform.
We see tremendous opportunity in the consumer directed healthcare market, and Alegeus is leading the way,” said Brian Sheth, President of Vista. “Their culture and commitment to excellent customer support, along with their strong track record of growth and performance, has positioned Alegeus to continue creating value for its customers by providing innovative and powerful solutions that they depend on. We look forward to welcoming Alegeus into the Vista family and to working with the leadership team as they continue to build upon the strong foundation they have established.
We have worked closely with Steve and the entire Alegeus management team, carving out the business from FIS, a global leader in fintech, and building an independent market leader in consumer directed healthcare,” said Mark F. Vassallo, Managing Partner of Lightyear. “The investment in Alegeus reflects one of Lightyear’s ongoing themes: identifying and pursuing outstanding companies located at the intersection of healthcare and payments. During our funds’ ownership, we supported Alegeus’ product innovation and value enhancement initiatives which accelerated growth and strengthened customer relationships. We’d like to thank the Alegeus team for their hard work and wish them continued success.
About Vista Equity Partners
Vista Equity Partners, a U.S.-based investment firm with offices in Austin, San Francisco, Chicago, and Oakland with more than $31 billion in cumulative capital commitments, currently invests in software, data and technology-enabled organizations led by world-class management teams with long-term perspectives. Vista is a value-added investor, contributing professional expertise and multi-level support towards companies’ realization of their full potential. Vista’s investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing. For more information, please visit www.vistaequitypartners.com.
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.
With more than 25 years of growth and innovation, Alegeus is the market leader in SaaS-based healthcare payment solutions. Our highly flexible, white-label platform powers account-based benefit programs such as HSAs, FSAs, HRAs, COBRA, wellness incentives, lifestyle benefits and beyond. We deliver exceptional user experiences and differentiated capabilities that help our partners strengthen their product offerings, operate more efficiently, and unlock their full growth potential. Our partnerships with the industry’s leading health plans, third-party administrators, financial services and benefit solution providers give Alegeus unparalleled reach in the market, with access to more than 100 million commercially insured Americans. And our unique partnership model empowers our clients to achieve outsized results – growing their programs at a rate that is 3-4X the market, and with the highest net promoter scores (NPS) in the industry. We never compete with our clients in the market – we win when they win. Alegeus is headquartered in Waltham, Mass., with operations centers in Orlando and Bangalore, and a large remote workforce.