Datavant specializes in managing patient data exchanges for healthcare providers, payers, and life sciences organizations, working with over 70,000 hospitals and clinics. The demand for digitized healthcare data has surged, particularly with AI advancements, benefiting Datavant's business. The company is seeking acquisitions that can enhance its offerings with existing market traction. While Datavant has not announced recent fundraising, reports suggest New Mountain Capital, its controlling shareholder, is considering extending its investment. Armbrester noted that Datavant's growth could support a public market debut, but there's no immediate pressure from investors to make an IPO decision.
Key takeaways:
- Datavant is planning at least "one or two" more acquisitions in early 2025, leveraging cash on its balance sheet.
- The company has made 11 acquisitions since its founding in 2017 and is valued at $7 billion following its merger with Ciox Health in 2021.
- CEO Kyle Armbrester suggests that Datavant could consider an IPO if market conditions are favorable, but there is no immediate pressure to do so.
- Datavant's business is thriving due to increased demand for digitized healthcare data, positioning it as a strong candidate for a future IPO.