The divestiture removes a non-core business and eliminates the company's debt, significantly de-risking the balance sheet. Monitor for HSR clearance and closing timeline; the stock should re-rate as a leaner, debt-free entity focused on higher-growth AI/analytics. The $37M revenue loss from Vitalware will be offset by interest expense savings and strategic focus.
Price Chart
Executive Summary
Health Catalyst signed a definitive agreement to sell its Vitalware mid-revenue cycle business unit to Med-Metrix for $147 million in cash. The proceeds, combined with cash on hand, will be used to fully repay and terminate its ~$160 million senior secured term loan facility. The transaction sharpens Health Catalyst's focus on its core AI and clinical improvement platform while eliminating a significant debt burden.
Key Financial Metrics
Key Facts
- Health Catalyst to divest Vitalware to Med-Metrix for $147 million in cash (base amount, subject to customary adjustments).
- Net proceeds plus cash on hand will fully repay and terminate the existing ~$160 million senior secured term loan facility.
- Vitalware generated approximately $37 million in fiscal year 2025 revenue.
- Transaction expected to close in Q3 2026, subject to HSR clearance and other customary conditions.
- No stockholder vote required; 80% employee acceptance condition applies.
- Raymond James served as financial advisor; Latham & Watkins as legal counsel.
Financial Impact
$147 million base purchase price; proceeds used to repay ~$160 million term loan facility, eliminating debt and associated interest/prepayment costs.
Risk Factors
- HSR review could delay or impose conditions on the transaction.
- Failure to retain at least 80% of Vitalware employees could block closing.
- Post-divestiture revenue base will be smaller; execution risk on core business growth remains.
- Use of cash to repay debt reduces liquidity buffer.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001636422-26-000082 |
| Exhibit: exhibit991-projectnewdawnp.htm | 0001636422-26-000082 |
| Document: hcat-20260604.htm | 0001636422-26-000082 |
| Document: 0001636422-26-000082-index-headers.html | 0001636422-26-000082 |
| Document: 0001636422-26-000082-index.html | 0001636422-26-000082 |
| Document: 0001636422-26-000082.txt | 0001636422-26-000082 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Press Release | $1.74 | awaiting T+20 | — | $1.62 (−6.78%) |
Oct 5, 2026 21d ago | 3 | $1.77 | awaiting T+20 | — | $1.62 (−8.36%) |
Sep 14, 2026 6w ago | 8-K | $1.72 $1.74 | ▲ +1.16% | ▼ −1.56% | $1.62 (−5.70%) |
Jul 28, 2026 12w ago | Press Release | $2.16 | awaiting T+20 | — | $1.62 (−24.91%) |
Jun 4, 2026 20w ago | 8-K | $1.94 $2.08 | ▲ +7.22% | ▲ +8.59% | $1.62 (−16.39%) |
Jun 3, 2026 20w ago | DEFA14A | $1.94 $2.08 | ▲ +7.22% | ▲ +8.59% | $1.62 (−16.39%) |
May 11, 2026 24w ago | 8-K | $1.48 $1.60 | ▼ −8.11% | ▼ −9.84% | $1.62 (−9.59%) |
May 1, 2026 25w ago | Press Release | $1.45 $1.39 | ▼ −4.14% | ▼ −9.42% | $1.62 (+11.86%) |
Apr 30, 2026 25w ago | 10-K/A | $1.45 $1.39 | ▼ −4.14% | ▼ −9.40% | $1.62 (+11.86%) |
Apr 30, 2026 25w ago | Press Release | $1.25 $1.40 | ▲ +12.00% | ▲ +7.03% | $1.62 (+29.76%) |
US Market Status
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