Greenway, HealthPort Making Financial Moves

While physician software vendor Greenway Medical Technologies is on the cusp of going public, health information management company HealthPort is seeking a buyer, according to published reports.

Carrollton, Ga.-based Greenway has priced its initial public offering of stock with the goal of raising $73.4 million to $86.7 million, down from its anticipated $100 million when it filed registration papers in 2011. The company expects to offer 5.35 million shares at $11-13 per share for a total of $58.5 million to $69.6 million, while existing shareholders will put up another 1.32 million shares, MarketWatch reports. The total of about 6.67 million shares is down 1 million shares from the initial registration, although underwriters can purchase up to 1 million additional shares to cover over allotments.

Alpharetta, Ga.-based HealthPort has retained Credit Suisse as it looks for a buyer, the company’s chairman of the board confirms to Health Data Management. The Street first reported the activity, quoting an anonymous source. The private company generated up to $60 million in earnings before interest, taxes, depreciation and amortization in 2011. HealthPort filed to go public in 2009 but later withdrew because of poor market conditions. To focus on core competencies, the company sold its revenue cycle management and ambulatory physician software business lines in late 2010 to CompuGroup Medical, then acquired Universata in mid-2011 to expand its release of information business line. Equity firms Thurston Group and Abry Partners own HealthPort and have been pleased with its growth, says Patrick Haynes, chair of HealthPort and Thurston Group. Now, it’s the natural course of the business to see if the firms can cash in on their investment, he adds. Not all shareholders are selling, but a majority of shares would be sold if an agreement is reached.