Health Catalyst, a U.S.-based provider of healthcare data and analytics for care organizations, signed a definitive agreement to acquire all equity interests of cybersecurity provider Intraprise Health for an aggregate purchase price of approximately $43 million. 

Intraprise offers an end-to-end cybersecurity risk management and services platform, while Health Catalyst's healthcare data and analytics ecosystem, Health Catalyst Ignite, supports healthcare companies' data management and data governance tasks. 

According to an SEC Filing, "As a portion of the consideration for the acquisition, Health Catalyst has agreed to issue approximately 2,200,490 shares of Health Catalyst’s common stock, $0.001 par value, valued at the closing reference price of $8.18, which is equal to the average trading price of the Common Stock on the Nasdaq Global Select Market for the 35 consecutive trading day period ended November 1, 2024, to the equityholders of Intraprise upon consummation of the transactions contemplated by the acquisition agreement, subject to certain closing conditions." 

The combined company will allow Health Catalyst to expand its capabilities to address its clients' data and improvement challenges pertaining to risk management and information security, particularly cyber resilience programs for evaluation, remediation and response strategies to cyber threats. 

Health Catalyst funded the transaction with a mix of cash and stock and anticipates the purchase will help it incorporate industry standards and protocols for cybersecurity.

The company also announced Dr. Jill Hoggard Green, former CEO of The Queen’s Health Systems, will join Health Catalyst's board of directors. 

"We’re excited for the meaningful healthcare transformation that can be realized by pairing Intraprise’s AI-powered cybersecurity prowess with the foundation of the Ignite ecosystem," Dave Ross, Health Catalyst chief product officer and chief technology officer, said in a statement. 

"As we support our clients’ fundamental data management and data governance tasks through Ignite, folding in Intraprise’s generative AI to help address complex and evolving third-party risks will have a significant impact on their data-driven efforts, optimizing decision-making and, ultimately, improving healthcare outcomes."

THE LARGER TREND

Health Catalyst reported its third quarter 2024 earnings this week, noting total revenue of $76.4 million and adjusted EBITDA of $7.3 million. 

The company reported a net loss of $14.7 million in Q3 2024 compared to a loss of $22 million in the same quarter last year.

"We are encouraged with our bookings results through Q3 2024 and we are excited to continue this momentum in Q4," Dan Burton, CEO of Health Catalyst, said in a statement. "Additionally, we are happy to be in a position to raise our Adjusted EBITDA guidance by $1 million for 2024. This is a testament to our commitment to financial discipline, operating leverage and profitable growth."

Health Catalyst's stock is trading on the Nasdaq under the ticker HCAT at around $8.70 per share, down from this year's high of $11.21 per share.

In August, Health Catalyst acquired Lumeon, a Boston- and London-based care management automation startup, allowing the U.S.-based company to expand into the U.K. market. 

Health Catalyst acquired oncology-focused healthcare technology company Carevive Systems in June. Carevive offers providers a platform and data aimed at improving treatment planning, care coordination, clinical trial screening, post-treatment care and remote patient monitoring.