The announcement said Evolution1 will offer 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. Evolution1 will immediately serve over seven million consumers, 50,000 employers, and 400 administrators, health plans and financial institution partners.
All members of both senior leadership teams will remain with the company. Robert E. Patricelli, Evolution Benefits’ founder and CEO, 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.
James Nadauld, a Principal of Genstar Capital, which acquired Evolution Benefits in July of 2010 and which is financing the current transaction, said in the announcement: “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.