Prosper Marketplace bought American Healthcare Lending, as reported in a recent article in the New York Times.
Prosper bought the surgical procedures lender for $21 million in cash to expand into the financing of elective medical services. American Healthcare Lending, based in Salt Lake City, finances a variety of elective procedures that are not often covered by insurance like cosmetic dentistry, bariatric surgery, and plastic surgery.
Just wrapping up a record year in 2014, Prosper facilitated roughly $1.6 billion in loans. That’s up more than 350 percent from 2013. In December alone, there was $205 million in loans facilitated.
“This acquisition is an important part of our strategy to grow awareness and expand our product offerings and capabilities into new vertical markets,” said Prosper CEO, Aaron Vermut.
Prosper’s purchase of American Healthcare Lending is just the next step in their company turnaround and part of its campaign to grow. This acquisition provides the potential for a lucrative business opportunity; Prosper is estimating the market for originating elective medical loans at roughly $20 billion a year.
Read full article at dealbook.nytimes.com