Health IT IPOs on the upswing
Initial public offerings (IPOs) in health IT have reached a fever pitch in 02015.
Investment in IT companies this year is growing by more than five times than the investment levels of 2007, according to a report from Healthcare Growth Partners. The number of public health IT companies year-to-date as of July 1 is 36—an 89 percent increase from the 19 public companies in fiscal year 2007. The total enterprise value of those companies grew 606 percent, from $12.4 billion in FY 2007 to $87.3 billion YTD July 1.
The number of IPOs for health IT companies went up from three in FY 2007 to seven already this year, and IPO proceeds jumped from $394 million in FY 2007 to $2.1 billion as of July 1.
"Regulatory, technology and capital forces have combined to dramatically accelerate the rate of investment activity in health IT with 2015 investment surpassing that of 2007 by more than five times by most measures," according to the report. "With these investments maturing, and as investors seek liquidity or late-stage capital, the IPO has emerged as an attractive and viable strategic alternative."
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.