Genstar Completes Sale of Evolution1 To WEX

Genstar Completes Sale of Evolution1 To WEX

evolution 1 nf3Genstar Capital has completed the previously announced sale of Evolution1, a provider of health payments and technology, to WEX Inc. (NYSE: WEX) for $532.5 million.

Evolution1 provides healthcare software and payment solutions that administer and manage consumer directed accounts such as Health Spending Accounts (HSAs), Flexible Spending Accounts (FSAs), and Defined Contribution accounts.  The firm has a network of 500 partner organizations that enable the company to deliver its products to 80,000 employer groups and 9,500,000 consumers across the country.  The company is based in Fargo, ND (

weiss nf1“Evolution1 is another great example of Genstar building industry-leading businesses. We would like to congratulate the Evolution1 management team for their efforts and partnership over the past several years,” said Eli Weiss, a Principal at Genstar.  Moving forward, we continue to expand the firm’s focus on software where we believe there are significant opportunities.”

Genstar Capital invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. Sectors of interest include financial services, software, healthcare, and industrial technology industries.  The firm was founded in 1988 and is based in San Francisco (

WEX represents more than 7.8 million cardholders and offers payment security and control across a wide spectrum of business sectors.  WEX has more than 1,400 employees and is headquartered in South Portland, ME (

Deutsche Bank and William Blair & Company acted as financial advisors to Evolution1 and Weil, Gotshal & Manges acted as legal advisor.

2014 PEPD • Private Equity’s Leading News Magazine • 7-17-14

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