Market Overview

Vista Equity Partners to Acquire Leading Consumer Directed Healthcare Firm Alegeus


Investment will accelerate the next phase of growth in Alegeus' mission
to transform consumer healthcare funding

the market leader in consumer directed healthcare (CDH), 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.

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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 300 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 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

"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."

The transaction is expected to close as soon as appropriate approvals
are completed. BofA Merrill Lynch and TripleTree acted as financial
advisors in the transaction, and Simpson Thacher & Bartlett acted as
legal advisor to Alegeus. Kirkland & Ellis acted as legal advisor to

About Alegeus
Alegeus is the market leader in consumer
directed healthcare (CDH) solutions, offering the industry's most
comprehensive platform for the administration of healthcare benefit
accounts (including FSAs, HSAs, HRAs, wellness incentive, dependent
care, and commuter accounts), the industry's most widely-used benefit
debit card, and powerful engagement solutions to help consumers maximize
savings and optimize spending for their healthcare. Over 300 clients –
including health insurance plans and third party administrators –
leverage Alegeus' deep expertise and proven technology to administer
benefit accounts for more than 30 million members and process more than
$9.1 billion in consumer healthcare payments annually. As the healthcare
and benefit markets continue to evolve, Alegeus delivers solutions that
enable clients to evolve their service offerings, operate their
businesses more efficiently, and focus on their customers. The company
is headquartered in Waltham, MA with operations in Orlando, FL and
Milwaukee, WI. For more information, please visit

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

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

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