A New York-based investment firm has agreed to acquire majority ownership of Muncie-based Ontario Systems LLC, one of Indiana’s oldest and largest software firms, and said it plans to help Ontario expand further.
The buyer, New Mountain Capital, which has more than $20 billion in assets under management, said it is replacing Washington, D.C.-based Arlington Capital Partners as Ontario’s largest investor. Terms weren’t disclosed, but the deal is expected to close Aug. 30.
Ontario, founded in 1980, produces what’s called revenue-cycle management, or RCM, software and accounts-receivable-management, or ARM, software.
The company, which has nearly 500 employees in 28 states, counts among its customers more than 600 hospitals and more than 600 federal, state and municipal governmental units. Ontario Systems’ customers handle more than $170 billion in payments annually.
Ontario Systems said in a press release that the investment from New Mountain comes at a time it is enjoying record revenue, profitability and growth.
“This is an exciting time in Ontario’s history, and partnering with New Mountain Capital is a natural step in our progression as we continue to execute on company-wide strategic initiatives,” Ontario President Jason Harrington said.
Arlington Capital Partners acquired Ontario Systems in 2015. Under its ownership, Ontario doubled revenue, said Ron Fauquher, CEO and cofounder of the company.