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Vista picks up Alegeus from Lightyear
Posted on Wednesday, 08 August 2018 12:48
Vista Equity Partners has agreed to buy consumer-directed healthcare payment and processing firm Alegeus from Lightyear Capital, for an undisclosed sum.

The transaction is expected to complete following appropriate approvals.

Vista’s move into this sector comes at a time when customers are trying to get the best value for healthcare in the form of health saving accounts (HSAs), flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs).

As a result of the deal, the investor has access to Alegeus’ technology and expertise in the industry which provides account-based benefit programmes for its own 225,000 employees, as well as 30.00 million consumers.

The target’s services include interactive analytics in which customers can manage data, alongside print and electronic systems that allow clients to produce claim, and other healthcare payments, efficiently.

Alegeus will broaden Vista’s client base as well as increase its presence in a competitive market.

Steve Auerbach, president of the buyer, said: “This acquisition offers us 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.”

Formed in 2012, Alegeus claims to be the market leader in consumer-directed administration of healthcare benefits accounts.

With offices in three main locations in the US: Boston, Orlando and Milwaukee, the company processes over USD 9.10 billion in healthcare payments per year.

Its services include FSAs, HSAs and HRAS, as well as dependent care, commuter and wellness incentive accounts.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 6,622 deals targeting health care and social assistance providers announced worldwide since the beginning of 2018.

CIGNA agreed to acquire pharmacy benefits management services business Express Scripts Holding Company, in the largest of these deals worth USD 67.00 billion.

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