In its largest acquisition since the financial crisis, JPMorgan Chase on Friday announced plans to purchase the Philadelphia-based medical payments technology firm InstaMed.
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The bank will spend more than $500 million for the business – marking the largest move since it bought the bank assets of Washington Mutual and Bear Stearns in 2008, sources told CNBC.
InstaMed, which currently employees approximately 300 employees, reportedly processed $94 billion in transactions in 2018.
The acquisition will expand the bank’s series of payment services designed specifically for healthcare consumers, providers and payers.
“We’ve made significant investments in our Wholesale Payments business over the years and this acquisition will give us a unique advantage in one of the fastest growing sectors. With InstaMed, we combine the strength and scale of JPMorgan Chase’s payments capabilities with a leading healthcare payments solution for consumers, providers and payers,” said Takis Georgakopoulos, Global Head of Wholesale Payments, JPMorgan Chase.
“One of my favorite stats is approximately 90 percent of all health providers still use paper billing,” Georgakopoulos told CNBC. “What InstaMed has created is both the platform and the network that allows them to simplify and streamline payments across payers, providers and consumers across the ecosystem.”
The bank is planning to incorporate its payments configuration with InstaMed. The firm will work within JPMorgan Chase’s wholesale payments division, the bank official said. It will also reportedly be offered to the bank’s customers.
“We couldn’t be more excited to join the JPMorgan Chase family – combining one of the world’s preeminent financial institutions with the premier technology and talent in healthcare payments,” said Bill Marvin, co-founder and CEO of InstaMed.
Marvin will reportedly still run the firm from Pennsylvania.
The Associated Press contributed to this report.