Lightyear puts Alegeus on the auction block

  • Boston company helps administer health benefit accounts
  • Lightyear bought from FNIS in 2012 for $335 mln
  • Comparable deal: Wex’s $532.5 mln deal for Evolution1

Lightyear Capital is exploring the potential sale of Alegeus, a consumer-directed healthcare payment and processing firm, according to four sources.

The process is expected to produce a sale to a strategic, having drawn interest from both healthcare IT and fintech players, two sources said.

Lightyear’s investment in Alegeus dates to 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.

The company aims to fetch $750 million-plus this time around, two of the sources said.

A third source added that Alegeus may command a big multiple given that it operates at the nexus of fintech and healthcare IT — two areas where there’s lot of interest.

Suitors might include the likes of HealthEquity, the publicly traded custodian of health savings accounts, another source suggested.

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.

In comparable activity, payment-processing company Wex Inc in 2014 spent $532.5 million cash for Evolution1, which similarly to Alegeus makes software that facilitates patient payments for consumer-directed healthcare accounts.

Lightyear, New York, specializes in the financial services industry, targeting middle-market companies in North America.

The sponsor’s fourth fund collected more than $950 million in November.

A Lightyear representative declined comment, while those with Alegeus didn’t immediately return a request for comment.

Action Item: Check out the rest of Lightyear’s portfolio

Luisa Beltran contributed to this report.

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