InComm, a prepaid services company, has acquired private equity firm Medagate which powers the OTCNetwork payments platform in the healthcare industry.

As part of the acquisition, InComm has purchases all of the outstanding stock of Medagate and the company will now operate as a wholly owned subsidiary of InComm. Additionally, all current employees of Medagate will remain with the company.

Medagate’s technology platform supports several applications which enable retail and healthcare to connect at the point of sale, allowing insured health plan members as well as Medicare and Medicaid members to access and spend their monthly healthcare benefits.

InComm and Medagate have previously partnered in January 2010 to develop a payment service which allows retailers and healthcare program managers to create their own acceptance networks and turnkey stored value card programs for government-backed Medicare members.

InComm has operations in 225,000 stores and operating locations in Australia/New Zealand, Brazil, Canada, Japan, Mexico, Puerto Rico, the UK, Arkansas, California, Colorado, Florida, Minnesota, Oregon, Texas and Utah.