B of A advises Lightyear’s Alegeus

  • Sale to fintech or HCIT company expected
  • Lightyear investment dates to 2012
  • Boston company helps administer health benefit accounts

Lightyear Capital’s Alegeus is working with B of A Merrill Lynch on its sales process, according to three sources.

Buyouts reported earlier this month that the consumer-directed healthcare payment and processing firm was on the auction block. It was unclear at the time which firm or firms were advising on the process.

As previously reported, the process is anticipated to produce a sale to a strategic buyer, whether a fintech or healthcare IT company. The company aims to fetch $750 million-plus this time around, sources previously said.

Possible suitors could include the likes of HealthEquity, the publicly traded custodian of health savings accounts, or Wex, the payment-processing company Evolution1 bought in 2014, sources have suggested.

Wex turned to B of A for financial advice on its $532.5 million sale.

Lightyear, meanwhile, has owned Alegeus since August 2012, when it purchased the business for $335 million as a carveout from Fidelity National Information Services. TripleTree offered sell-side advice on the deal.

Led by CEO Steve Auerbach, Boston’s Alegeus helps administer healthcare benefit accounts, including FSAs, HSAs, HRAs, wellness incentive, dependent care and commuter accounts.

The company serves more than 300 clients including insurance plans, third-party administrators and financial institutions. Alegeus says it processes more than $9.1 billion in healthcare payments annually, servicing more than 40 percent of the benefit accounts in the market.

Representatives of Lightyear, Alegeus and B of A didn’t immediate return requests for comment.

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