mbi, the leading provider of health care debit cards for pre-tax benefits administration, announced it has received a $5 million financing commitment from private equity funds managed by Mesirow Financial, a Chicago-based diversified financial services firm. mbi will use the proceeds to further enhance its leadership position in the employee benefits marketplace. Terms of the financing were not disclosed.
“We are thrilled to have a leading institution like Mesirow Financial as a financial partner,” said Rob Butler, vice-president of sales and marketing for mbi. “We intend to direct the proceeds toward increasing sales, marketing and technology initiatives that will allow mbi to accelerate its growth rate and better serve its customers. As a result of the recent IRS ruling affirming debit cards for use with health reimbursement arrangements (HRAs), we have an even more compelling reason to further invest in and improve what is already a great tool.”
Health care debit cards, introduced to the marketplace by mbi in 1998, allow employees to pay for eligible health care expenses with a card that looks and acts like a debit card, rather than submitting claims and being reimbursed.
“We are excited to be partnering with mbi,” said Josh Daitch, vice president of Mesirow Financial. “By all measurements, they are clearly the market leader with the best technology platform and a highly skilled and seasoned team. In a high-potential market such as this for health care debit cards, it was important for us to invest in the leading company with the strongest upside. In mbi, we’ve done that.”
mbi has been funded to date with capital contributed from Wind Point Partners, a leading middle market private equity firm. Jim Forrest, Managing Director at Wind Point, states, “Mesirow Financial is a terrific partner to assist mbi in further enhancing its strong market leadership position. We look forward to great things ahead.”
About mbi ()
Founded in 1995, mbi introduced the first debit card to the healthcare industry for pre-tax benefit administration of FSAs, HRAs, Transit, Dependent Care and other defined contribution plans. The mbi Flex Convenience(R) Card enables employees using health reimbursement arrangements to pay for eligible healthcare expenses wherever MasterCard(R) is accepted, including physician and dental offices, pharmacies and vision service facilities. More than 200 Third-Party Administrators offer the mbi Flex Convenience(R) card to provide over 4000 employers, such as BellSouth, CompUSA, eBay and SC Johnson, and close to 300,000 employees enjoy the advantages of mbi’s system.
About Mesirow Financial ()
Mesirow Financial is a diversified financial services firm headquartered in Chicago. Founded in 1937, it is an employee-owned, private company with more than 700 employees in 12 offices across the country. The firm is well capitalized with more than $5 billion in assets under management and fiscal 2003 revenues over $200 million.Details