Private equity firm the Riverside Co. has invested in Medical Payment Exchange Inc., as interest in health care technology companies continues to spur deals.
Medical Payment Exchange, headquartered in Rockland, Maryland, aims to help health care providers manage reimbursement claims. The company's management team, which includes founder Tom Blair, has developed other ventures in the sector, including Catalyst Health Solutions and United Payors & United Providers.
Riverside's investment will allow the company to grow.
The Cleveland and New York-based firm focuses on buying an investing in businesses that are valued at up to $250 million. Riverside has been very active in 2014. Earlier in September, the firm acquired Protexer, which makes and sells shoe covers. Also in September, the firm invested in Tate's Bake Shop Inc., which makes cookies and baked goods. In August, the firm backed craft beer brewery Uinta Brewing Co. The firm's co-CEOs won Mergers & Acquisitions M&A Mid-Market Dealmakers of the Year award for 2013.
Law firm Jones Day advised Riverside on the deal.
Health care technology companies have been attracting investor interest, as a surge in patients triggered by the Affordable Care Act prompts providers to seek savings. For more, see 5 Technologies Drive Health Care M&A.