June 18, 2010

Healthaxis, a leading provider of healthcare benefits administration and claims management software and solutions, announced that Virgo Capital completed its merger and acquisition of 100% of its outstanding capital stock from the Company’s former parent BPO Management Services, Inc. in January of this year.

Healthaxis, originally founded in 1965 and headquartered in Irving, Texas, has for over 30 years provided world class benefits administration system software and outsourced healthcare transaction services on a Software-as-a-Service (SaaS) basis for leading TPAs, insurance companies and other healthcare payers. In 2009 alone, the Company’s software platforms processed more than $5 billion in healthcare claims and serviced more than 500,000 lives.

“We are very excited to be working with Virgo Capital, both as a financial partner and as a business partner,” said¬†John M. Carradine, President and CEO of Healthaxis. “As a privately- held company with a supportive owner, we look forward to taking our business to the next level, focusing on our long-standing customers in the healthcare industry. Healthaxis is one of the longest tenured solutions providers of healthcare benefits systems and services in the industry, and our delivery approach for fully-hosted SaaS based solutions was one of the first and still is the most complete and fully integrated.”

“We invested in Healthaxis for several reasons,” noted¬†Hemanth Parasuram, Managing Director of Virgo Capital. “First, we were impressed with Healthaxis’ management team and their technical staff. Second, we believe that their benefits administration systems capability, their approach to delivering software in a true SaaS based hosted environment and their commitment to meeting the demands of an ever-changing healthcare landscape are all exceptional. Now, as a stand-alone private company, backed by a well capitalized private equity firm, Healthaxis is soundly positioned to continue enhancing its healthcare IT product and service offerings for both its existing customer base and for new customers.”