Lightyear Capital to Acquire FIS Healthcare Benefit Solutions Business for $335 Million

Lightyear Capital LLC (“Lightyear”), a New York-based private equity firm focused on financial services investing, announced today that an affiliated investment fund has entered an agreement to acquire FIS' Healthcare Benefit Solutions business from Fidelity National Information Services for $335 million. The resulting new company, referred to herein as “Benefit Solutions”, is a leading financial technology company providing benefits administration software as a service, multi-purse debit cards and transaction processing solutions for consumer directed healthcare (“CDH”) accounts. CDH accounts enable employees to save money to pay for their rising out-of-pocket healthcare expenses. A recent industry study by Aite projects significant growth in the CDH market. Benefit Solutions has the number one market share in both healthcare benefit administration and debit card processing technology and is the only integrated technology provider in the CDH sector. Following the close of the transaction, Robert Natt will join Benefit Solutions as its full time Executive Chairman. Natt served as the CEO of MBI Benefits, a predecessor to Benefit Solutions, prior to its sale to Metavante in 2005. Natt was most recently the CEO of PayFlex, a leading Third Party Administrator (“TPA”). Thomas Torre, currently Senior Vice President and General Manager of Benefit Solutions, who has been with the business since 2005, will become Chief Executive Officer.