Health Catalyst, a US-based healthcare data analytics software provider backed by care consortium Kaiser Permanente and healthcare and insurance provider UPMC, raised $182m in its initial public offering yesterday.
The company increased the number of shares in the offering from 6 million to 7 million and priced them at $26 each, above its $20 to $23 range. They surged more than 50% on its first day of trading on the Nasdaq Global Select Market, reaching a $39.17 close and a market cap of $1.1bn.
Founded in 2008, Health Catalyst has created an analytics platform that relies on artificial intelligence and big data technologies to link disparate healthcare data, such as electronic health records and insurance claims, to identify potential clinical, financial and operational improvements.
The offering follows more than $378m in equity financing, Health Catalyst having completed a $100m series F round in February 2019 backed by UPMC Enterprises and Kaiser Permanente Ventures, respective investments divisions of UPMC and Kaiser Permanente.
OrbiMed led the series F round, while Sequoia Capital, Norwest Venture Partners (NVP), Sands Capital Ventures and Brent James, chief quality officer of health system Intermountain Healthcare, also invested. The round included an unspecified amount of debt financing.
Health Catalyst closed its series E round at $128m in June 2018 according to the IPO filing. It was co-led by UPMC Enterprises and NVP and included Kaiser Permanente Ventures and care providers MultiCare Health System, OSF Healthcare, Partners HealthCare and Indiana University Health, the latter through its CHV Capital unit.
Leerink Capital, Sequoia Capital, Sands Capital, Epic Venture Partners, Leavitt Equity Partners and Tenaya Capital also contributed to the series E round.
Partners HealthCare, Kaiser Permanente and CHV Capital backed a $70m series D round for the company in 2015 that was led by NVP with contributions from Sequoia, Sorenson Capital, Sands Capital, Tenaya, Epic Venture Partners and Leavitt Equity Partners.
Kaiser Permanente, CHV Capital, NVP and Sorenson Capital were also among the investors in Health Catalyst’s $41m series B round in 2013.
UPMC’s shareholding in Health Catalyst has been reduced from 6.3% to 5.1%. The company’s largest investor remains Sequoia (17.5% post-IPO), followed by NVP (16.8%).
Goldman Sachs, JP Morgan and William Blair are the joint book-running managers for the offering, while Piper Jaffray, Evercore ISI and SVB Leerink are passive book-running managers and SunTrust Robinson Humphrey is co-manager.
The underwriters have been given the customary 30-day option to acquire up to 1 million additional million shares which would take the size of the IPO to $208m.
