Instamed final bids due end of April

  • Marvin and Ceib co-founded Instamed in 2004
  • Instamed has raised $134.2 mln in VC funding: Crunchbase
  • New Mountain is considering selling Equian

By Luisa Beltran and Sarah Pringle

Private equity is still in the running for Instamed, the healthcare payments company that’s up for sale, sources said.

Final bids for the Philadelphia company are due at the end of the month, one of the sources said. Instamed is expected to sell for $500 million to $600 million, the person said. FT Partners is advising on the process.

The company generated approximately $56 million in 2018 revenue, a second source said, estimating that Instamed’s top line will grow to $70 million in 2019.

The auction has been whittled down to six bidders: three East Coast private equity firms and three strategics, the source said. The strategics include two bank processors and one healthcare payments company, the source said.

Bill Marvin, Instamed’s president and CEO, along with Chris Seib, chief technology officer, founded the company in 2004. Instamed, which calls itself the PayPal of healthcare, said in September that it would process more than $70 billion in healthcare payments in 2018. The company went Ebitda positive in Q4, Buyouts reported.

Instamed has raised $134.2 million in venture funding, according to Crunchbase. Investors include Carrick Capital Partners, Osage Venture Partners, U.S. Bancorp and KeyBank.

The sale is the latest by a healthcare payments company. VPay, which is backed by FTV Capital, is expected to go up for sale, Buyouts reported April 15. The company could command north of $700 million. Raymond James is advising.

New Mountain Capital is weighing a sale of Equian LLC, a healthcare payments company, Bloomberg reported April 16. Equian could go for $3.5 billion, the story said. New Mountain expects to field first round bids this month for Convey Health Solutions, Buyouts reported earlier this month.

Action Item: For more information, call Instamed CEO Marvin (215) 789-3680