InstaMed, healthcare payments firm, seeks north of $500 mln in sale

  • Founded in ’04 by Chris Seib and CEO and President Bill Marvin
  • Philadelphia company went Ebitda-positive in Q4
  • InstaMed considers itself the ‘PayPal of healthcare”

By Sarah Pringle and Luisa Beltran

InstaMed, the venture capital-backed healthcare payments company, is exploring a sale, according to three sources.

The Philadelphia, Pennsylvania company has tapped FT Partners for financial advice, they said.

InstaMed is seeking $500 million to $600 million, according to one of the sources. The company went Ebitda-positive in Q4 2018, this source and another said.

A sale to a strategic is anticipated, with the buyer landscape likely to include financial institutions, payment companies and healthcare revenue-cycle-management companies, sources said.

Interested RCM companies could include players such as Bain Capital’s Waystar, Inovalon’s Ability Network and RevSpring, while payments companies could include the likes of TSYS, Worldpay (formerly Vantiv), GlobalPay and First Data/Fiserv, one of the sources suggested.

InstaMed was founded in 2004 by Chris Seib and CEO and President Bill Marvin.

The company, which considers itself the PayPal of healthcare, simplifies payment transactions for providers, payers and consumers in one place.

InstaMed in a September news release said it would process more than $70 billion in healthcare payments in 2018.

The healthcare payments firm has raised a total of $134.2 million over 17 funding rounds, according to Crunchbase.

Its latest round of funding came in September 2016, when it collected $50 million from Carrick Capital Partners.

Other investors include U.S. Bancorp, KeyBank, Actua Corp, Ashby Point Capital, Ben Franklin Technology Partners, Midas Capital, NJTC Venture Fund and Osage Partners.

An InstaMed spokesperson declined to comment.

Update: This story has been updated to include Instamed’s decline to comment.