Health Catalyst to Divest Vitalware Unit to Med-Metrix for $147M
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The transaction enables the healthcare intelligence company to exit a non-core financial software segment and concentrate on its primary focus areas, including clinical, operational, and consumer performance improvement technologies.
Health Catalyst has signed a definitive agreement to divest its mid-revenue cycle business unit, Vitalware LLC, to Med-Metrix for $147 million in cash, marking a strategic shift to streamline operations and reduce financial leverage.
The transaction enables the healthcare intelligence company to exit a non-core financial software segment and concentrate on its primary focus areas, including clinical, operational, and consumer performance improvement technologies. The deal is expected to close in 2026, subject to customary regulatory approvals.
Vitalware, a mid-revenue cycle solutions provider, reported approximately $37 million in revenue in fiscal year 2025. The unit is known for its capabilities in coding compliance, charge capture, chargemaster management, and price transparency solutions for healthcare organizations.
Following the divestiture, Health Catalyst plans to use the $147 million in cash proceeds, along with existing liquidity, to fully repay and terminate its $160 million senior secured term loan facility. The company stated that this move is expected to improve its balance sheet position by eliminating outstanding debt and associated financing obligations.
The company said the restructuring will allow it to redirect capital and operational focus toward its core healthcare data platform and artificial intelligence roadmap. Health Catalyst’s platform is built on what it describes as 18 years of clinical and operational data, supporting healthcare systems in improving outcomes and efficiency through analytics-driven insights.
Med-Metrix, a revenue cycle management technology company, will acquire Vitalware as part of its strategy to expand its mid-revenue cycle capabilities and service portfolio.
Raymond James acted as exclusive financial advisor to Health Catalyst for the transaction, while Latham & Watkins LLP served as legal counsel. The company has filed the required disclosures with the U.S. Securities and Exchange Commission through a Form 8-K.
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