Oklahoma City-based healthcare automation service provider RMS (Revenue Management Solutions) has bought Israeli company OrboGraph for over $100 million. According to Globes, the acquisition was financed through the first follow-on fund of St. Louis-based private equity firm TSCP (Thompson Street Capital Partners), which owns RMS.
OrboGraph uses artificial intelligence to detect and analyze fraudulent checks and provides automated healthcare payment processing. The company is located in Rehovot and Massachusetts.
“OrboGraph is the first Israeli company we have acquired,” said TSCP Managing Director Brian Kornman, “but for several years now, we have been curiously following the Israeli high-tech market, with the aim of making additional acquisitions in the future.”
Kornman also said that massive fraud losses in the financial market are expected to rise as an economic recession in the United States and globally takes hold. As a result, the market for automated fraud detection is expected to grow.
“Over the past decade, we have been at the forefront of advanced AI technologies,” said OrboGraph founder Avikam Baltsan. “And in collaboration with Israeli academia, we have developed groundbreaking solutions and upgraded all of our systems to deep learning-based systems.”
OrboGraph was founded in 1995 by Baltsan, a veteran of the Operations Research Branch of the Israel Air Force and a graduate of the Technion and Tel Aviv University, as a spin-off from Orbotech (which was sold to Silicon Valley giant KLA Tencor for $3.4 billion in 2018).
OrboGraph has over 4,000 clients, mainly U.S. financial institutions, service bureaus, clearing houses and major Israeli banks. The company’s activities in the healthcare payments sector will be transferred to RMS as part of the deal. The banking operations will remain under the authority of OrboGraph, including the brand name.