Online lending company Prosper Marketplace has agreed to buy American Healthcare Lending in a $21 million deal to further diversify its lending platform.
Salt Lake City-based American Healthcare is a network that gives doctors and other healthcare providers the ability to offer loans to patients for elective medical procedures at their offices.
“This acquisition is an important part of our strategy to grow awareness and expand our product offerings and capabilities into new vertical markets,” said Aaron Vermut, Prosper’s chief executive.
American Healthcare Lending has a software-as-a-service model and its service is integrated with a number of partner facilities. The company services behavioral health programs, fertility clinics, cosmetic surgery centers, bariatric surgery center, cosmetic dental offices as well as hospitals and physician groups.
The company issues loans of up to $100,000 for various services. “The healthcare industry is in the midst of a massive transformation that is impacting out-of-pocket expenses for millions of consumers,” said Shaun Sorensen, CEO, American Healthcare Lending, in a statement.
Last year, Prosper moved over $1.6 billion in loans across its platform, up over 350% from the previous year and $205 million in loans on the platform in December alone, the company said.
Loans on the platform range from re-financing high-interest credit card debt, to buying cars, to home renovations. In all the company has facilitated more than $2.5 billion in loans to 250,000 borrowers.