Two years into its private-equity ownership, revenue-cycle outsourcing firm Ensemble Health Partners filed proposed initial public offering paperwork Wednesday.
The Form S-1 Ensemble Health Partners filed with the Securities and Exchange Commission does not disclose how many shares it plans to offer or their price range. The company set a proposed maximum offering price of $100 million, although that number largely acts as a placeholder. The company plans to list its Class A common stock under the ticker symbol ENSB on the Nasdaq Global Select Market.
Bon Secours Mercy Health announced in May 2019 it was selling a 51% equity ownership stake in Ensemble Health Partners to Golden Gate Capital, a private equity firm. The deal held that Cincinnati-based Bon Secours Mercy Health would remain a minority owner, as well as a commercial partner.
Revenue-cycle vendors have been a hot investment area for private equity firms, with the stronger candidates being those that offer an end-to-end product such as Ensemble Health Partners.
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The company announced in June that it had acquired Odeza, a digital consumer communications platform that integrates with electronic health record platforms to simplify and automate patient interactions.
Founded in 2014, Ensemble Health Partners works to distinguish itself by touting its leaders' experiences in hospitals and physician practices. The company works with more than 380 U.S. hospitals and 8,000 healthcare providers. Ensemble Health Partners reported significant growth last year after adding a record number of new end-to-end clients and achieving record revenue. The company also hired more than 1,500 new employees.
Ensemble Health Partners generated $67 million in net income during the six months ended June 30, compared to about $35 million in the prior-year period, according to the its prospectus. Healthcare providers that have end-to-end contracts with the company accumulated $21 billion in net patient revenue during the first half of this year, significantly higher than the $4 billion they recorded in all of 2017.
This year, the U.S. Patent and Trademark Office granted five patents on Ensemble Health Partners technologies, with six others pending, according to the company.
Goldman Sachs, BofA Securities, Deutsche Bank Securities and Guggenheim Securities are acting as joint lead book-running managers for the proposed offering.