Evolution Benefits™ and Lighthouse1 Unite to Create Evolution1
Partnership creates the industry leader in next generation of healthcare technology and services
AVON, Conn. & MINNEAPOLIS--(April 14, 2011) -- Evolution Benefits and Lighthouse1 announced today that they are merging to create Evolution1 offering the nation's most comprehensive electronic payment, client server and cloud computing solutions for the administration of Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), VEBAs, Wellness and Transit Plans.
"As we focus on future investments to further develop this strong platform company, we will explore new acquisitions and innovative product developments by Evolution1 that further our leadership position and revolutionize a rapidly changing healthcare market."
Evolution1 will immediately serve over seven million consumers, 50,000 employers, and 400 administrators, health plans and financial institution partners. Evolution1 partners can expect a passion for partner growth and success, dedication to service, and a spirit of innovation from the new company. "Our new combined name and brand—Evolution1—is designed to symbolize the fact that we are bringing together the best products, best people, and best service in the industry," said Robert E. Patricelli, industry visionary and Evolution Benefits' founder and CEO.
All members of both senior leadership teams will remain with the company. Patricelli will retire from active management of the company at closing and will become vice chairman of the board of directors. Jeff Young, Lighthouse1 CEO, will become chairman and CEO of the merged company, and Chris Byrd, currently president and chief operating officer of Evolution Benefits, will retain those responsibilities for Evolution1.
"The combination of our innovative products will further our leadership position in a rapidly changing healthcare market. Together with our partners we are committed to reducing costs and simplifying the business of healthcare." said Young.
Evolution Benefits has been among the industry's fastest growing organizations, recognized as one of Deloitte Technology's Fast 500 for the last five years, and Lighthouse1 has grown over 200% in the last three years.
Chris Byrd emphasized that "Evolution1 is committed to maintaining and investing in all of its current products, the Benny™ benefits debit card, the Lighthouse1 cloud computing software platform and the PayDirect™ client server software solution, as well as using its financial and marketplace strength to constantly develop enhancements and new products."
James Nadauld, a Principal of Genstar Capital, which acquired Evolution Benefits in July of 2010 and which is financing the current transaction, said "As we focus on future investments to further develop this strong platform company, we will explore new acquisitions and innovative product developments by Evolution1 that further our leadership position and revolutionize a rapidly changing healthcare market." The terms of the transaction, which are subject to customary regulatory approvals, were not disclosed.
Eli Weiss, a Vice President of Genstar, said "As the future of healthcare technology and services continues to evolve and change, Evolution1 is positioned to be the industry leader. We appreciate the prior and ongoing investment and commitment of State Bankshares, Inc. of Fargo, ND to the future of Evolution1."
About Evolution Benefits™, Inc.
Evolution Benefits™, Inc. (EB) is the industry leader in innovative electronic payment solutions for the employee benefits market since 2001. Its principal products are the Benny™ benefits debit card and the PayDirect® software suite. The Card applies advanced payment and patented auto-substantiation technologies to health-related benefits accounts such as Flexible Spending Accounts, Health Reimbursement Arrangements, and Health Savings Accounts. PayDirect is a comprehensive benefit administration client server solution for consumer-directed benefits. The company provides card and/or software services to almost 300 TPAs, health plans and other administrators and has over 3.6 million cards in circulation. For more information, visit www.EvolutionBenefits.com.
About Lighthouse1, LLC
Lighthouse1 and its partners serve more than 2.7 million consumers, making Lighthouse1 the nation's largest web-based healthcare solution that manages HSAs, HRAs, FSAs, and Transit Plans. It is the only solution available today that meets more than 1,100 unique benefit plan designs, simplifies the user experience, and satisfies workflow management needs of administration partners, employers, and consumers. It does all this on one technology platform comprised of Lighthouse1 OnDemand, the Lighthouse1 OneCard, and fully integrated web-based portals available 24/7/365. Lighthouse1 and its partners are dedicated to reducing costs and simplifying the business of healthcare. Visit www.lighthouse1.com for more information.
About Genstar Capital, LLC
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating executives and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar has more than US$3 billion of committed capital under management and targets investments focused on selected sectors within the software, healthcare, financial services, and industrial technology industries.
Anne Carpenter, 860-678-5561
pr @ evolutionbenefits.com
Tiffany Wirth, 701-499-7215
twirth @ lighthouse1.com
Chris Tofalli Public Relations (for Genstar)
Chris Tofalli, 914-834-4334
chris @ tofallipr.com
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