US-based healthcare assistance service Accolade filed for an initial public offering on Friday that could enable mass media group Comcast, health insurer Humana and medical equipment provider McKesson to exit.
The company has set a placeholder target of $100m for the offering, which is set to take place on the Nasdaq Global Select Market.
Accolade has created an online platform that can be used by clients’ employees to navigate the healthcare benefits process, giving them access to nurses, behavioural health professionals and healthcare benefits experts who can help them find effective medical treatment.
The offering comes after Accolade increased revenue approximately 47% to more than $88m in the first nine months of 2019 while keeping net losses steady at $49.2m over the same period.
The company has received a total of $194m in equity and debt financing, most recently taking $20m from Humana as part of an October 2019 expansion to an existing partnership agreement.
Accolade had raised $50m in an April 2018 round co-led by McKesson subsidiary McKesson Ventures, Andreessen Horowitz, Carrick Capital Partners and Madrona Venture Group, and backed by Cross Creek Advisors and Madera Technology Partners.
Andreessen Horowitz led a $70m series E round for Accolade in 2016 that included Madrona Venture Group, following $22.5m from McKesson Ventures and health insurance firm Independence Health Group the year before.
The company’s earlier funding came from now defunct Comcast subsidiary Comcast Interactive Capital as well as Accretive Health, the investment firm that provided the company’s co-founders, and Carrick Capital Partners and Oak Hill Capital Partners.
Although it did not reveal the precise size of their stakes, the filing states that the shareholders who own stakes of 5% or more in Accolade are Accretive, which owns 43 million shares, Comcast, which holds 10.7 million, Andreessen Horowitz, Carrick Capital and Thomas K. Spann.
Goldman Sachs, Morgan Stanley and BofA Securities are lead bookrunning managers for the IPO. Credit Suisse, Piper Sandler and William Blair are bookrunning managers while Baird and SVB Leerink are co-managers.
