Emdeon (EM) is expected to price their IPO this week. The company is a provider of healthcare claims and payment processing solutions.
Business Overview (from prospectus)
We are a leading provider of revenue and payment cycle management solutions, connecting payers, providers and patients in the U.S. healthcare system. Our product and service offerings integrate and automate key business and administrative functions of our payer and provider customers throughout the patient encounter, including pre-care patient eligibility and benefits verification, claims management and adjudication, payment distribution, payment posting and denial management and patient billing and payment collection. Through the use of our comprehensive suite of products and services, which are designed to easily integrate with existing technology infrastructures, our customers are able to improve efficiency, reduce costs, increase cash flow and more efficiently manage the complex revenue and payment cycle process. We believe our solutions are critical to payers and providers as they continue to face increasing financial and administrative pressures. In 2008, we generated revenues from operations of $853.6 million, Adjusted EBITDA of $205.2 million, net income of $11.9 million and cash flow provided by operations of $83.3 million.
Offering: 21.5 million shares at a price range of $14 - $16 per share. Net proceeds of approximately $142.7 million will be used for working capital and general corporate purposes, which may include the repayment of indebtedness and future acquisitions and to purchase 377,311 EBS Units held by certain of the EBS Equity Plan Members at a price per unit equal to the price paid by the underwriters for shares in this offering.
Lead Underwriters: Morgan Stanley, Goldman Sachs
Our total revenues were $444.4 million for the six months ended June 30, 2009 as compared to $422.9 million for the six months ended June 30, 2008, an increase of approximately $21.6 million or 5.1%... Our total cost of operations was $271.6 million for the six months ended June 30, 2009 as compared to $271.0 million for the six months ended June 30, 2008, an increase of approximately $0.6 million, or 0.2%... Our total sales, marketing, general and administrative expense (excluding corporate expense) was $29.5 million for the six months ended June 30, 2009 as compared to $30.1 million for the six months ended June 30, 2008, a decrease of approximately $0.5 million, or 1.8%... Our corporate expense was $22.1 million for the six months ended June 30, 2009 as compared to $17.0 million for the six months ended June 30, 2008, an increase of approximately $5.0 million, or 29.6%.
We compete on the basis of the size and reach of our network, the ability to offer a single-vendor solution, the breadth and functionality of products and services we offer and are able to develop and our pricing model. While we do not believe any single competitor offers a similarly expansive suite of products and services, our payer, provider and pharmacy services compete with:
transaction processing companies, including those providing EDI and/or Internet-based services and those providing services through other means, such as paper and fax;
healthcare information system vendors that support providers, including physician practice management system and electronic medical record system vendors;
health insurance companies, pharmacy benefit management companies and pharmacies that provide or are developing electronic transaction services for use by providers and/or by their members and customers;
healthcare focused print and mail vendors; and
banks that have invested in healthcare data management assets.
We also compete, in some cases, with alliances formed by the above competitors. In addition, major software, hardware, information systems and business process outsourcing companies, both with and without healthcare companies as their partners, offer or have announced their intention to offer products or services that are competitive with some of ours. Major competitors for our products and/or services include McKesson (RelayHealth) (MCK) and UnitedHealth Group (Ingenix and OptumHealth) (UNH), as well as other smaller competitors that typically compete with us in one or more of our product and/or service categories.