SALT LAKE CITY - Health Catalyst , Inc. (NASDAQ: NASDAQ:HCAT), a prominent data and analytics technology provider to healthcare organizations, has announced a definitive agreement to acquire Intraprise Health, LLC, a top-rated healthcare cybersecurity company. The acquisition is expected to conclude in the fourth quarter of 2024.
Intraprise Health is recognized for its comprehensive cybersecurity risk management platform and services, aimed at safeguarding clients from cyber threats and managing subsequent liabilities. The company has been rated highly in the 2024 KLAS Research Cybersecurity Survey. This acquisition is set to expand Health Catalyst's capabilities in security compliance, enhancing their portfolio of data-driven improvement offerings for healthcare leaders.
The integration of the two companies is anticipated to advance Health Catalyst's information security strategy and risk data management by incorporating industry security standards and protocols. This is expected to support benchmarking and drive transformational change towards best practice-based security standards in healthcare.
Dan Burton, CEO of Health Catalyst, emphasized the critical importance of cybersecurity for their clients and stated that the addition of Intraprise will strengthen the support provided to healthcare leaders in managing enterprise-level risk and enhancing analytic capabilities.
Intraprise CEO George Pappas mentioned that the synergy between Health Catalyst's data and analytics ecosystem, Health Catalyst Ignite™, and Intraprise's AI-powered cybersecurity measures will offer enhanced security and improved cybersecurity posture for clients.
Dave Ross, Health Catalyst's Chief Product Officer and Chief Technology Officer, expressed enthusiasm for the potential healthcare transformation through the combination of Intraprise's AI capabilities with the Ignite ecosystem.
The transaction is funded through a mixture of cash and stock, with further details disclosed in Health Catalyst's Form 8-K filed with the Securities and Exchange Commission on November 6, 2024.
About Health Catalyst, the company is known for its commitment to driving substantial, measurable healthcare improvement through its cloud-based data platform, which is powered by data from over 100 million patient records.
The press release also contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expected outcomes. Health Catalyst advises referring to their SEC reports for a detailed discussion of risk factors that could affect actual results.
This news report is based on a press release statement from Health Catalyst.
In other recent news, Health Catalyst has been in the spotlight due to its strong Q2 2024 earnings and revenue results. Reporting a revenue of $75.9 million, marking a 4% year-over-year increase, and adjusted EBITDA of $7.5 million, the company surpassed its financial guidance. This was accompanied by a substantial growth in its platform subscription client base in the first half of 2024, outpacing the entire previous year's growth.
In terms of analyst upgrades and downgrades, Canaccord Genuity maintained a Buy rating and an $11.00 price target on shares of Health Catalyst. Conversely, Piper Sandler adjusted its outlook on Health Catalyst, reducing the price target to $11 from $14 while retaining an Overweight rating, suggesting potential for the stock to outperform the broader market.
Other company news includes the completion of acquisitions worth $61.2 million from May to August, enhancing Health Catalyst's market position. The company also anticipates a return to double-digit revenue growth in 2025. Despite a client's bankruptcy proceedings, Health Catalyst maintains its full-year adjusted EBITDA guidance, showcasing its resilience in its financial strategy.
InvestingPro Insights
As Health Catalyst (NASDAQ: HCAT) moves forward with its acquisition of Intraprise Health, investors may find value in examining the company's financial health and market performance. According to InvestingPro data, Health Catalyst's market capitalization stands at $498.88 million, reflecting its position in the healthcare technology sector.
One of the key InvestingPro Tips highlights that Health Catalyst holds more cash than debt on its balance sheet. This strong liquidity position could be advantageous as the company pursues its acquisition strategy and integrates Intraprise Health's cybersecurity capabilities into its offerings.
Despite the company not being profitable over the last twelve months, with an operating income margin of -24.87%, InvestingPro Tips indicate that analysts predict Health Catalyst will be profitable this year. This projection aligns with the company's strategic moves, including the Intraprise Health acquisition, which may contribute to improved financial performance.
Health Catalyst has shown a strong return over the last three months, with a price total return of 30.86%. This recent market performance could reflect investor optimism about the company's growth prospects and strategic direction.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and data points to further evaluate Health Catalyst's potential. The platform currently lists 6 more tips for HCAT, providing a deeper analysis of the company's financial health and market position.
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