Healthcare technology firm Convey Holding Parent, Inc. announced a plan to raise $200 million through its upcoming IPO. The offering will consist of 13.3 million shares at an expected price range between $14 and $16 per share. In 2020, the company generated $288 million in consolidated revenue, a 28% increase over the previous year.
Convey Holding Parent, also known as Convey Health, provides specialized Medicare technology solutions and healthcare advisory services to their customers. Its clientele ranges from national health insurance plans to pharmacy benefit management firms. Convey currently operates out of Fort Lauderdale, Florida.
Convey Health has been backed by private equity for more than half a decade now. In 2016, the company was bought by New Mountain Capital, LLC, and the partnership produced two acquisitions, one in 2017 and the second in 2018. The first was for Gorman Health Group, which provides technology and consulting services to more than 150 government-sponsored health programs to stay compliant, optimize revenues and manage complex processes, and the second targeted HealthScape Advisors and Pareto Intelligence, two sister companies. HealthScape is a management consulting firm and Pareto is an analytics and advisory company that delivers technology solutions to improve outcomes.
However, New Mountain Capital decided to sell Convey Health to fellow private equity firm TPG Capital L.P. in 2019 for an undisclosed sum. Convey Health hasn’t announced a deal since then; it seems the two companies focused more on product development and organic growth rather than M&A.
Based on its expected IPO, that didn’t seem like a bad move.
