The acquisition was financed through the first follow-on fund of Thompson Street Capital Partners.
By Pesach Benson, TPS
OrboGraph, an Israeli provider of advanced check recognition and fraud detection solutions and automated healthcare payment processing, was acquired by Revenue Management Solutions (RMS), an Oklahoma City-based healthcare payment automation service provider for more than $100 million.
The acquisition was financed through the first follow-on fund of Thompson Street Capital Partners, a St. Louis-based private equity firm whose portfolio of companies it owns includes RMS.
Orbograph, which is located in the Israeli town of Rehovot and in Burlington, Massachusetts, produces AI-based systems focusing on automating check payments and detecting fraud in the US, Israel, and other countries.
Orbograph also developed the Healthcare Payments Innovation Center, a patented service for extracting financial content from printed documents in the U.S. healthcare payments market.
Since its founding in 1995, the company has processed more than 100 billion checks for 4,000 U.S. financial institutions, service bureaus, clearing houses and banks. According to Orbograph, its technology has saved clients about $200 million in annual losses.
As part of the acquisition, Orbograph’s activities in the healthcare payments sector will be transferred to RMS while banking operations will remain under Orbograph, which will keep its brand name.
“Over the past decade, we have been at the forefront of advanced AI technologies, and in collaboration with Israeli academia, we have developed groundbreaking solutions and upgraded all of our systems to deep learning-based systems, including the ability to translate huge amounts of data into consistent and ongoing performance improvements and new services that we will continue to offer in the future,” said OrboGraph founder and CEO Avikam Baltsan.