Virgo Capital Acquires Healthaxis

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

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 third party administrators (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."

About Healthaxis

Healthaxis, founded in 1965, is a leading provider of healthcare payer solutions, including benefits administration and claims management software and related healthcare transaction processing services. Healthaxis' highly scalable technology is offered on a software-as-a-service (SaaS) basis, enabling third party administrators and insurance companies to offer highly flexible and configurable benefits programs while maintaining the highest levels of auto-adjudication and quality. The results are lower medical costs for employers and members, and reduced administrative costs for payers. Healthaxis' solutions cover all areas of healthcare payer administration, including front-end mailroom services, OCR and data capture, EDI administration, benefits enrollment systems, claims adjudication and admin software solutions, self-service healthcare portals for members, employers, administrators and providers, provider database administration, and a variety of data integration and management services for healthcare administration. For information on Healthaxis, visit www.healthaxis.com.

About Virgo Capital

Virgo Capital is a private equity firm with offices in Austin, Texas and Oklahoma City, Oklahoma, focused on making control investments in profitable and established software and technology-enabled services companies. Virgo currently manages Virgo Capital Fund I, L.P. which has total capital commitments of nearly $50 million. For information on Virgo Capital, visit www.virgocapital.com.

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