JPMorgan Chase recently announced it is acquiring healthcare payments company InstaMed for $500 million, which makes it the company’s largest acquisition since the recession in 2008. Back then, JPMorgan bought Bear Stearns along with Washington Mutual’s assets.
InstaMed is known for automating multiple billing processes for healthcare companies and the acquisition will bolster its growth efforts. And InstaMed has about 300 employees and the healthcare payment company processed $94 billion in transactions last year, according to CNBC.
InstaMed was originally launched in 2004 by former Accenture execs Bill Marvin and Chris Seib. Going forward, InstaMed is going to continue to be run by Marvin in Philadelphia. And there are no plans for changing the branding.
“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 JPMorgan managing director Takis Georgakopoulos. “The InstaMed team is passionate about delivering an excellent client experience with a focus on innovation, keeping data safe and secure, and simplifying the end-to-end healthcare payments process – a natural fit with our Wholesale Payments franchise.”
Since the 2008 and 2009 recession, JPMorgan has not acquired many companies with the exception of WePay a couple of years ago. The financial giant tends to sign partnerships with tech companies instead.
“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,” added InstaMed co-founder and CEO Bill Marvin. “Together, we will be able to invest in and expand the InstaMed Network, accelerate our consumer reach, and deepen our commitment to innovation.”
JPMorgan is going to integrate its payments infrastructure to InstaMed in order to offer complete solutions to clients. And this business will be integrated within the whole payments division. JPMorgan currently oversees $6 trillion in payments being processed around the world every day.
This acquisition will actually be separate from Haven — which is a joint venture between JPMorgan, Amazon, and Berkshire Hathaway. Haven is a nonprofit that is aiming to reduce costs for the 1.2 million employees who work for the three companies.
