Emdeon IPO: Healthcare Reform Beneficiary (EM)

By Douglas A. McIntyre Updated Apr 27, 8:47PM EDT · Published Aug 12, 9:56AM EDT

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Emdeon Inc. (NYSE: EM) is today’s ‘other’ initial public offering. The company priced 23,700,000 shares of its common stock at a price of $15.50 per share. Not all proceeds are going back into the company: 10,725,000 shares were offered by Emdeon itself and 12,975,000 were offered by selling stockholders. This is essentially nothing short of a health care reform play which saw a boost in shares and a top-end of the range pricing.

Emdeon is a leading provider of revenue and payment cycle solutions that connect payers, providers and patients to integrate and automate key business and administrative functions throughout the patient encounter. The company’s business consists of 340,000 providers, 1,200 government and commercial payers, some 5,000 hospitals, about 81,000 dentists, another 55,000 pharmacies, and a network of roughly 600 vendor partners.

Emdeon has been active in making strategic deals. Just recently, the company acquired The Sentinel Group, a health care fraud and abuse management services, in June. It also recently announced the acquisition of eRx Network, LLC. One recent pre-IPO announcement was that the company would collaborate with RX Response in critical pharmacy disaster reporting.

If Emdeon sounds familiar, that is because General Atlantic Partners bought it back in 2006 and it also received an investment from Hellman & Friedman. It also has ties to James Clark, the Netscape founder and was part of Healtheon. Morgan Stanley, Goldman Sachs, UBS, and Barclays Capital are listed as the book-running managers of the offering.

JON C. OGG
AUGUST 12, 2009

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.