Fifth Third Announces Acquisition of Provide, a Fintech Company Serving Healthcare Practices Nationally

Rhea-AI Summary

Fifth Third Bancorp (NASDAQ: FITB) has announced a definitive agreement to acquire Provide, a digital platform tailored for healthcare practices. This acquisition enhances Fifth Third’s capabilities in meeting the complex banking needs of retail healthcare providers, solidifying its position in a rapidly growing sector. Fifth Third's prior investments and collaboration with Provide since 2018 set a favorable foundation for this deal. Although financial terms remain undisclosed, the partnership aims to improve client service and expand product offerings for healthcare practitioners nationwide.

Positive

• Acquisition of Provide strengthens Fifth Third's digital capabilities in the healthcare sector.
• Provides national reach and expertise in lending for retail healthcare providers.
• Prior investment in Provide since 2018 positions Fifth Third advantageously for integration.
• The deal aims to enhance customer experience for healthcare clients.

Negative

• Financial terms of the transaction are undisclosed, raising uncertainty about the deal's impact.
• Dependence on regulatory approvals may delay integration and expected benefits.

Fifth Third Bancorp (NASDAQ: FITB) today announced a definitive agreement to acquire Provide, a digital platform for healthcare practices. Building on Fifth Third’s strong legacy of digital innovation and focus on the healthcare sector, this transaction adds world-class national digital capabilities addressing the most complex lending and banking needs of retail healthcare providers.

“The healthcare industry is one of the largest and fastest growing segments of the U.S. economy. Over the last decade, Fifth Third’s healthcare team has expanded its presence and expertise to become one of the top healthcare banking platforms for middle-market and corporate clients,” said Greg Carmichael, chairman and chief executive officer for Fifth Third Bancorp. “Together, we can deliver a client experience that enables healthcare providers to focus on what they do best—providing the care their patients need while we make their banking experience convenient and efficient.”

In 2018, Fifth Third was an early investor in Provide, and the bank began funding loans through the company’s platform in 2020. Provide will maintain its brand identity and operate as an independent business line as it continues to scale and expand product offerings for healthcare practices and the doctors who own them nationwide.

Founded in 2013 by Daniel Titcomb and James Bachmeier III, Provide offers an integrated suite of financial products that makes starting and running a healthcare practice easier, giving providers more time to care for their patients. Provide’s first product was practice lending, enabling providers to start, buy or expand healthcare practices, and it has since grown to offer banking accounts and payments services. Through its history, Provide has originated more than $1 billion in loans, and in partnership with Fifth Third, has provided core banking and payments services to over 70% of the doctors for whom it provides acquisition financing.

“The Provide team shares our commitment to client service and has a strong track record of innovation, growth and credit savvy,” said Kala Gibson, head of business banking. “We’re thrilled to take our partnership with Provide to the next level, combining its best-in-class lending experience with our full banking solution set.”

“Our partnership with Fifth Third has enabled us to accelerate our mission of financially empowering healthcare providers. We are excited to join the Fifth Third team and bring the best of technology and relationship banking to the doctors we serve,” said Titcomb.

“We know that Fifth Third is the right place for us to grow our franchise and broaden our product offering, as we continue to attract the best talent and deliver market-leading customer experience to our clients,” Bachmeier said.

The acquisition is subject to customary closing conditions, including regulatory approvals. Financial terms of the transaction have not been disclosed.

About Provide

Provide's mission is to build financial products that make starting and running a healthcare practice easier. Provide's offerings include practice lending, business bank accounts, and insurance. The company was founded in 2013 by Daniel Titcomb and James Bachmeier III, who were both raised by small business owners and felt they could make it simpler for healthcare practitioners to become successful business owners.

About Fifth Third

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of March 31, 2021, Fifth Third had $207 billion in assets and operated 1,098 full-service banking centers and 2,383 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 53,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of March 31, 2021, had $464 billion in assets under care, of which it managed $58 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the Nasdaq® Global Select Market under the symbol “FITB.” Fifth Third Bank was established in 1858. Deposit and Credit products are offered by Fifth Third Bank, National Association. Member FDIC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210622005706/en/

FAQ

What is the significance of Fifth Third Bancorp's acquisition of Provide for FITB investors?

The acquisition is expected to enhance Fifth Third's market position in healthcare banking, potentially leading to increased revenue and client satisfaction.

When was the acquisition of Provide by Fifth Third Bancorp announced?

The acquisition was announced on a recent date but the specific date was not mentioned in the press release.

What does Provide offer to healthcare practices?

Provide offers an integrated suite of financial products, including practice lending, business bank accounts, and insurance, aimed at facilitating the operation of healthcare practices.

How will the acquisition impact the services provided by Fifth Third to healthcare clients?

The acquisition will enhance Fifth Third's ability to deliver comprehensive banking services tailored to the unique needs of healthcare providers.

Is there any financial data available regarding the acquisition of Provide?

No financial terms of the transaction have been disclosed in the press release.