Fidelity National to sell healthcare benefit solutions business to Lightyear
26 June 2012
Fidelity National Information Services Inc (FIS), the US-based financial data processing company, today said that it will sell its healthcare benefit solutions business to private equity firm Lightyear Capital for $335 million in cash.
Commenting on the reasons for the sale, Frank Martire, CEO of FIS said, "The divestiture is consistent with our primary focus to serve financial institutions, as well as our strategy to maintain leadership positions in markets where we have meaningful scale."
The Jacksonville, Florida-based company said that the sale includes its Consumer Driven Healthcare Solutions and Health and Financial Network Solutions, which provide benefits administration, multi-purse debit card and benefit account processing and payment fulfillment services to consumers, healthcare providers and payers.
FIS, the he world's largest global financial data processor for the banking industry, will retain its state and federal government- sponsored electronic benefits transfer (EBT) businesses and programs which serve clients in more than 25 states.
FIS, which had revenues of $5.75 billion last year, said that the business being sold generated about $120 million revenues in 2011.
''FIS has built a market leading position in healthcare account processing and payment services, and this business has performed very well,'' said Martire.