Healthcare information technology and business services provider Emdeon Business Services, Nashville, has opened its initial public offering of 21.45 million shares of common stock at an opening price pegged in the range of $13.50 to $15.50 a share, with half of the shares offered by the company and half offered by selling shareholders, the company announced. Shares will be traded on the New York Stock Exchange under the symbol EM.
Prior to the IPO, Emdeon was wholly owned by venture capital firms General Atlantic and Hellman & Friedman. Underwriters have the option to purchase from the selling stockholders an additional 3.2 million shares of class A common stock to cover overallotments, according to a company news release. About $5.3 million of the net proceeds from the sale is expected to be used to repurchase interests in its operating subsidiary held by certain members of management; the company will not receive any of the proceeds from the sale of the common stock of the selling shareholders, the release stated.
General Atlantic acquired a 52% interest in Emdeon Business Services from HLTH Corp., Elmwood Park, N.J., in 2006 for a reported $1.2 billion. General Atlantic and Hellman & Friedman acquired the remaining 48% of Emdeon from HLTH in 2008 for a reported $575 million.