Datavant targets healthcare acquisitions in fresh M&A push
Deal News | Jan 07, 2025 | EIN
Datavant, a $7 billion healthcare data startup, is building momentum for possible future public listing by planning additional acquisitions in early 2025. Having already made 11 acquisitions since its inception in 2017, Datavant's recent spree included acquiring Trace Data and products from Apixio. Although New Mountain Capital holds a controlling stake, Datavant maintains profitability and a significant revenue base, enabling acquisitions through its cash reserves. CEO Kyle Armbrester indicated the company's strategy aligns with being a promising IPO contender in the digital health market. His past leadership experience guiding Signify Health to an IPO fuels optimism regarding Datavant’s trajectory. Despite no immediate IPO compulsions, Datavant's operational scale, extensive collaborations with healthcare providers, and evolving market dynamics signify a robust position for public market debut when conditions are optimal.
Sectors
- Healthcare Technology
- Private Equity
Geography
- United States – The operational and strategic activities of Datavant and the stakeholders mentioned are primarily based in the United States.
Industry
- Healthcare Technology – Datavant operates in the healthcare technology sector, focusing on patient data management and exchanges across providers, payers, and life sciences organizations.
- Private Equity – New Mountain Capital's involvement as a controlling shareholder places Datavant within the private equity sphere, influencing its strategic decisions.
Financials
- $7 billion – Valuation of Datavant following its merger with Ciox Health in 2021.
- $1 billion+ – Datavant's revenue, indicating steady profitability.
- 11 – The number of acquisitions made by Datavant since its founding in 2017.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Datavant | Target | Company | A healthcare data company managing patient data exchanges, involved in expanding its market influence through strategic acquisitions and considering an IPO. |
| New Mountain Capital | Private Equity Firm | Company | The controlling shareholder of Datavant, playing a pivotal role in strategic financial and growth activities. |
| Kyle Armbrester | CEO | Person | Chief Executive Officer of Datavant, leading its strategic direction towards growth through acquisitions and potential IPO. |
| Trace Data | Acquisition | Company | A data privacy organization recently acquired by Datavant. |
| Apixio | Acquisition | Company | A healthcare AI startup from which Datavant acquired data analytics products. |
| Ciox Health | Merged Entity | Company | Merged with Datavant in 2021 in a $7 billion deal. |
| Flare Capital Partners | Industry Commentator | Company | Provides insights on healthcare investment trends and IPO expectations. |