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Change has tools in place for USD 936mn IPO
Posted on Friday, 14 June 2019 13:02
Change Healthcare has set a price range on its upcoming initial public offering (IPO) that could value the Tennessean revenue and payment cycle management and clinical information exchange technology provider at as much as USD 2.37 billion.
The group has hired 22 underwriters for the sale of 42.86 million shares on Nasdaq at USD 16.00 to USD 19.00 apiece, which does not take into account a 6.43 million stock overallotment option.
While it is working on raising up to USD 936.43 million from the IPO, it is also running a concurrent offering comprising 5.00 million tangible equity units and a green shoe for an additional 0.75 million securities.
Change is an independent technology platform that provides data and analytics-driven tools to improve clinical, financial and patient engagement in the US healthcare industry.
The company’s portfolio comprises software, analytics, technology-enabled services and network options aimed at improving and simplifying decision making, billing, collection and payment processes for the sector’s system payers and providers.
In the financial year ended 31st March 2018, it facilitated nearly 14.00 billion healthcare transactions and about USD 1,000 billion in adjudicated claims, or one-third of all healthcare expenditures in the US.
Change’s customer base at the end of March 2018 comprised 2,200 government and commercial payer connections, 900,000 physicians, 118,000 dentists, 33,000 pharmacies, 5,500 hospitals and 600 laboratories.
The company’s network transacted clinical records for over 112.00 million unique patients, representing more than one-third of the estimated total US population.
Change, which currently counts Blackstone and Hellman & Friedman as its principal shareholders, was formed in 2016 as HCIT Holding to act as a partner with McKesson in a joint venture named Change Healthcare LLC.
The entity comprised the majority of McKesson’s technology solutions segment and substantially all of the legacy business of Change Healthcare Performance.
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