After 10 years of operation, athenahealth Inc. has announced plans for an initial public offering of stock.
The Watertown, MA-based company announced late Friday that it has filed a registration statement with the Securities and Exchange Commission.
However, while the statement has been filed with the SEC, athenahealth said the statement has not yet become effective.
The filing with the SEC said the company expects to raise $86.25 million through the stock sale. An exact number of shares to be sold through the offering was not specified. In its listing, athenahealth said it had 29.4 million shares of stock privately held by 280 stockholders.
The company’s primary product is athenaCollector, a revenue cycle management service that automates and manages billing-related functions for physician practices. The company also has developed a service that automates and manages medical record-related functions for physician practices, which includes an electronic medical record.
The company’s filing says athenahealth has a contract renewal rate of at least 97 percent in each of the last five years. Revenues in 2006 totaled $75.8 million, compared with $53.5 million in 2005.
The filing noted that as of March 31, 2007, more than 10,000 medical providers – including 7,500 physicians – using its services in 32 states and 54 medical specialties.
The company was incorporated in August 1997, and its chief executive officer is Jonathan Bush, a cousin of President George W. Bush.
The IPO will be co-managed by Piper Jaffray & Co. and Jeffereies & Co. Inc. Goldman Sachs & Co. and Merrill Lynch & Co. will act as joint bookrunners for the proposed offering and aid in prospectus distribution.