(Reuters) – Truven Health Analytics Inc, a U.S. provider of data to hospitals, doctors and companies, is preparing for an initial public offering it hopes will value it at more than $3 billion, including debt, according to people familiar with the matter.
The preparations follow last month’s $600 million IPO of peer Inovalon Holdings Inc (INOV.O), which demonstrated strong investor demand for companies that sell data analytics that can be used to cut costs in the healthcare industry.
Veritas Capital Fund Management LLC, the private equity firm that acquired Truven from data and information company Thomson Reuters Corp (TRI.TO) for $1.25 billion in 2012, is working with investment banks on an IPO of Truven that could come later this year, the people said on Monday.
The sources asked not to be identified because the preparations are confidential. Veritas Capital and Truven did not respond to requests for comment.
Based in Ann Arbor, Michigan, Truven offers healthcare data and analytics solutions to U.S. federal and state government agencies, employers, health plans, hospitals, clinicians and pharmaceutical companies.
This data is used to identify cost savings, improve healthcare outcomes, fight fraud and make operations more efficient.
Truven reported net revenue of $394.9 million and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $94.7 million in the nine months to the end of September.
Inovalon, which went public last month, currently has an enterprise value equivalent to 42 times its 2014 EBITDA of around $130 million, a rich multiple that investors typically assign to companies with high growth potential.