Ensemble Health Partners, which provides a healthcare revenue cycle management platform, announced terms for its IPO on Tuesday.
The Cincinnati, OH-based company plans to raise $605 million by offering 29.5 million shares at a price range of $19 to $22. At the midpoint of the proposed range, Ensemble Health Partners would command a market value of $3.6 billion.
Ensemble states that it is a leading provider of technology-enabled revenue cycle management (RCM) solutions for health systems, including hospitals and affiliated physician groups. The company manages and optimizes health systems' RCM operations from patient intake through revenue collection by deploying a scalable operating model that leverages a combination of experienced operators, proven processes, and proprietary cloud-based technology. The company derives approximately 90% of net revenue from long-term, end-to-end RCM contracts, which generally have an initial term of 5-10 years with automatic renewals thereafter.
Ensemble Health Partners was founded in 2014 and booked $742 million in revenue for the 12 months ended June 30, 2021. It plans to list on the Nasdaq under the symbol ENSB. Goldman Sachs, BofA Securities, Deutsche Bank, Guggenheim Securities, Credit Suisse, Evercore ISI, Wells Fargo Securities, SVB Leerink, Baird, and William Blair are the joint bookrunners on the deal. It is expected to price during the week of October 25, 2021.
