Fifth Third Bancorp in Cincinnati has agreed to buy Provide, a digital platform for health care practices.
The $207 billion-asset Fifth Third said the acquisition will add capabilities to address complex lending and banking needs for retail health care providers. Fifth Third did not disclose the price it will pay.
“Over the last decade, Fifth Third’s health care team has expanded its presence and expertise to become one of the top health care banking platforms for middle-market and corporate clients,” Greg Carmichael, Fifth Third’s chairman and CEO, said in a Tuesday press release.
“Together, we can deliver a client experience that enables health care providers to focus on what they do best — providing the care their patients need while we make their banking experience convenient and efficient,” Carmichael added.
Fifth Third said the acquisition will add $6 million in revenue this year, along with $14 million in expenses as it invests in the platform.
Fifth Third invested in Provide in 2018, and it started funding loans through the fintech’s platform last year. Provide will keep its brand and operate as an independent business line.
Provide, founded in 2013, has originated more than $1 billion of loans.
Fifth Third said it holds about $400 million of Provide loans and that it will hold all of the company’s future originations.