MUNCIE - A nearly 40-year-old software provider in Muncie will soon be under new ownership. Ontario Systems says it has entered into an agreement to be acquired by New York-based investment firm New Mountain Capital. Financial terms of the deal are not being disclosed.

Ontario Systems says as a result of New Mountain Capital's majority share, the firm will replace Arlington Capital Partners as the company's largest investor. The Washington D.C. firm acquired Ontario Systems in 2015.

Jason Harrington, president of Ontario Systems calls the deal a "natural step" in the company's progression.

"The New Mountain team’s expertise in growing software businesses will be invaluable as we look to deepen our revenue cycle management (RCM) offerings and continue providing our customers market-leading solutions they have come to trust," said Harrington. "Building on the momentum of this transaction, I look forward to working closely with New Mountain to unlock unique growth opportunities."

Ontario Systems was founded in 1980 and currently employs nearly 500 people in 28 states. The company provides software that "automates complex workflows and accelerates revenue recovery for clients in the healthcare, accounts receivable management, and government markets." It boasts more than 600 hospitals, including five of the 15 largest hospital networks, among its customers.

"Ontario exemplifies New Mountain’s longstanding investment thesis of backing best-of-breed solutions providers addressing critical pain points in revenue recovery and workflow management," Matt Holt, managing director at New Mountain Capital, said in a news release. "We look forward to supporting Ontario’s continued growth by identifying both organic and inorganic initiatives to help the Company realize its full potential."

The acquisition is expected to close August 30.