NEWS BRIEF: Utah-based Health Catalyst is Acquiring Virginia-based Intraprise Health for $43 Million in Cash and Stock

Salt Lake City-based Health Catalyst (NASDAQ:HCAT) is acquiring Reston, Virgina-based Intraprise Health for $43 million in cash and stock.

According to the acquisition news release, Intraprise "... is (considered) the leading compliance and cybersecurity organization that provides a holistic visualization of compliance and security posture for healthcare."

According to Health Catalyst's Form 8-K filing with the U.S. Securities and Exchange Commission, Health Catalyst will issue just over 2.2 million new shares of its common stock (valued at $8.18/share) to Intraprise as partial payment for its acquisition.

At the $8.18/share price point, Intraprise will receive

• Health Catalyst shares valued at ~$18 million, as of the announcement date of the acquisition, as well as
• ~$25 million in cash from Health Catalyst.

{NOTE: The $8.18/share price was calculated by Health Catalyst based upon the average trading price for its stock "... for the 35 consecutive trading day period ended November 1, 2024 ...."}

According to Dan Burton, Health Catalyst CEO:

"Cybersecurity is a critically important area for our clients. The addition of Intraprise to Health Catalyst's existing portfolio of data-driven improvement offerings will help us fortify the support we provide healthcare leaders, specifically addressing the costs associated with risk management at the enterprise level and enhancing analytic capabilities to power more meaningful security insights."

According to the Intraprise website, it currently supports over 10,000 healthcare organizations to help them "... integrate disconnected security processes, unify fragmented risk data, and identify hidden vulnerabilities before they harm their patients, reputation, or bottom-line."

As noted in our 22 July 2024 writeup about Health Catalyst, the company claimed in its most recent annual report that its

"... solutions are currently empowered by trillions of datapoints gathered from over 100 million patient data records."

Some of Health Catalyst's current healthcare provider organizations include

• Allina Health, 
• AlohaCare, 
• Carle Health, 
• Children’s Hospital of Orange County, 
• Community Health Network, 
• INTEGRIS Health, 
• Lifepoint Health, 
• Mass General Brigham, 
• Queen's Health System, 
• Steward Health Care, 
• Temple University Health System, 
• UnityPoint Health, and 
• UPMC.

In addition, Health Catalyst also serves

• Academic medical centers, 
• Integrated delivery networks, 
• Community hospitals, 
• Large physician practices, 
• Accountable Care Organizations (ACOs), 
• Health information exchanges, 
• Health insurers, and other
• Risk-bearing entities.

According to the Health Catalyst news release and its Form 8-K filed with the SEC, the acquisition of Intraprise Health is expected to close before the end of 2024.

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