Change Healthcare files for a $100 million IPO

NASHVILLE, Tenn. – Change Healthcare, a provider of revenue cycle management, data analytics-driven solutions and enterprise imaging solutions, has filed for a $100 million initial public offering (IPO).

Change Healthcare plans to list on the Nasdaq stock exchange under the stock symbol “CHNG.” Barclays, Goldman Sachs and J.P. Morgan were the joint bookrunners on the deal. No pricing terms were disclosed.

For the year ended March 31, 2018, Change Healthcare reported approximately $3 billion in revenue, of which 87% was recurring revenue, net income of $192.4 million, adjusted EBITDA of $943.8 million, and adjusted net income of $449.7 million.

For the nine months ended December 31, 2018, Change Healthcare reported $2.3 billion of revenue, net income of $139 million, adjusted EBITDA of $677.8 million, and adjusted net income of $280.9 million.

According to Mercom’s Digital Health Funding Tracker, Change Healthcare raised about $30 million in VC funding and acquired PokitDok, National Decision Support Company (NDSC), and Docufil for an undisclosed amount. In January 2019, the company also made a strategic investment in MDsave, an online marketplace for shopping healthcare services.

Emdeon acquired Change Healthcare in 2014 at a rumored deal value of $185 million. The combined company was rebranded as Change Healthcare.

In 2017, Mckesson Technology Solutions division merged with Change Healthcare, and are now operating under the Change Healthcare brand.

The company has a unit in Richmond, B.C. that specializes in enterprise imaging technology.