Change Healthcare files for $200M upsized IPO

• Change Healthcare (CHNG) has filed a prospectus for a $200M IPO, up from $100M in mid-March.
• The healthcare tech firm is a 50/50 joint venture between McKesson (NYSE:MCK) and Change Healthcare Inc. (formerly HCIT Holdings, Inc.). It is a combination of most of MCK's Technology Solutions unit and Change Healthcare's legacy business known as Change Healthcare Performance.

Comments

[c0lbski]

I will be watching change health care like a hawk. Question to anyone here: is change going to be the primary software unit for MCK? Or what role do they have in respect to the McKesson company?

[Conviction Capital Research]

McKesson has a lot of value that can be unlocked as a result of equity interests from their venture arm. The stock is criminally undervalued despite margin pressures. I am a buyer here, long MCK.

[Gurumentality]

Being in the IT industry, I think McKesson software is solid and could easily be a software empire like Microsoft, Adobe, or even Cisco. I have been waiting on this IPO for a while. I am totally long on this one.

[Conviction Capital Research]

A friend who works at a tech giant up in Silicon Valley had similar things to say.