Avon electronic health benefits vendor Evolution Benefits said Monday it has completed its merger with Minnesota health savings accounts manager Lighthouse 1 to create Evolution1.
The newly formed joint venture between will provide comprehensive electronic payment, on-premise and cloud computing solutions for the administration of flexible spending accounts, health savings accounts, health reimbursement accounts, and wellness and transit plans.
Financial terms of the deal first announced in April still weren’t disclosed.
Evolution1 will serve more than seven million consumers, 50,000 employers, and 400 administrators, health plans and financial institution partners. The company employs more than 250 people and will retain offices in Avon, North Dakota, Minnesota and Missouri.
Jeff Young, former Lighthouse1 CEO, is the chairman and CEO of Evolution1. Chris Byrd, former president and chief operating officer of Evolution Benefits, has retained those responsibilities for Evolution1.
Robert E. Patricelli, industry visionary and Evolution Benefits’ founder and CEO, retired from active management of Evolution Benefits at closing and has become vice chairman of Evolution1’s board of directors.
“All of us at Evolution1, together with our Partners, share a vision of next generation healthcare technology and services,” said Young. “We remain fully dedicated to reducing costs and simplifying the business of healthcare.”
Evolution Benefits and Lighthouse 1 are recognized as among the industry’s fastest growing organizations. Evolution was No. 349 on Deloitte Technology’s 2010 ranking of Fast 500 technology firms for its 251 percent growth rate from 2005 to 2009.
Lighthouse1 also was on the list for growing 200 percent in the last three years, authorities said.
Evolution Benefits was sold last July to San Francisco equity investor Genstar Capital LLC, whose specialty is investing in choice segments of the healthcare, financial services, software and industrial technology industries.
