NEW YORK, Feb 4 (IFR) - The Premier healthcare alliance, the
nation's largest and most comprehensive healthcare database, is
headed for an IPO.
Bank of America Merrill Lynch and JP Morgan
have been mandated as joint bookrunners and are targeting a $5bn
valuation for the healthcare industry data aggregator, according
to a source close to the situation.
Representatives from BofA Merrill Lynch and JP Morgan
declined comment. Premier neither confirmed nor denied that it
was contemplating an IPO.
"We continually pursue strategies that will enable us to
achieve our goal. We will communicate openly if and when our
owners decide to make any changes to our business model," said
Alven Weil, director of PR and communications at Premier.
A consortium of healthcare providers formed Premier as a way
to lower operating and administrative costs through sharing
information. The company's owners are some 200 hospitals and
health-care systems, which collectively operate 2,700 hospitals.
The business model is quite similar to Verisk Analytics
, a provider of data and analytics to the insurance
industry, which raised $1.9bn in its October 2009 debut.
In that offering, selling shareholders comprised more than
100 property and casualty insurers that populated Verisk's
The selling shareholders initially were asked to sell
minimum parts of their holdings in the IPO. As Verisk became a
more seasoned public company, they were allowed to sell more
It is likely that Premier will pursue a similar tack if it
opts to price an IPO.