IPO Report: Press Ganey Holdings, Inc. (PGND)

Francis Gaskins |

Press Ganey Holdings, Inc. (PGND) is a leading provider of patient experience measurement, performance analytics and strategic advisory solutions for healthcare organizations across the continuum of care. It is based in Wakefield, MA.

Five other companies are scheduled for the week of May 18. The full IPO calendar is available at IPO Premium.

SEC Documents

Manager, Joint-managers: Barclays, Goldman Sachs, William Blair, Wells Fargo Securities
Co-managers: Raymond James, Baird, BMO Capital Markets, Avondale Partners

End of lockup (180 days): November 17, 2015
End of 25-day quiet period: Monday, June 15, 2015

PGND scheduled a $205 million IPO with a market capitalization of $1.2 billion at a price range midpoint of $23 for Thursday, May 21, 2015 on NYSE.

Press Ganey Summary

PGND is a leading provider of patient experience measurement, performance analytics and strategic advisory solutions for healthcare organizations across the continuum of care.

PGND’s mission is to help healthcare organizations reduce patient suffering and improve clinical quality, safety and the patient experience.

Press Ganey Valuation

Glossary

Accumulated deficit (mm)

.

.

$39

     

Per share dilution

.

.

-$29.42

     
             

Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

PGA Holdings (Press Ganey Holdings) (PGND)

$1,201

4.0

50.0

2.7

-3.6

17%

Annualizing Q1 '15

         

Conclusion

Neutral slightly positive

Annualized P/E of 50 seems  high

Top line revenue +14.5% to $75mm for Q1

Gross margin +15.5% to 58%

Net income up 81% to 8% of revenue for  Q1

Per share dilution of -$29.42

Price to tangible bk of  -3.6%

Price to bk of 2.7

Business

PGND is a leading provider of patient experience measurement, performance analytics and strategic advisory solutions for healthcare organizations across the continuum of care.

PGND’s mission is to help healthcare organizations reduce patient suffering and improve clinical quality, safety and the patient experience.

PGND provides its clients with innovative, technology-based solutions that capture the perspectives of patients, physicians, nurses and other healthcare employees which enable its clients to benchmark, analyze and improve the patient's care experience.

PGND supports clients in achieving the "Triple Aim" of improving the patient experience, managing their population's health and controlling costs through improved patient engagement and experience of care.

PGND believes it offers a powerful value proposition to the healthcare industry, as PGND helps drive transformational change through greater performance transparency, better care coordination and sustainable performance improvements.

With nearly 30 years of experience, Press Ganey is recognized as a pioneer and thought leader in the approximately $3.7 billion U.S. market for patient experience measurement and performance improvement solutions.

PGND believes clients value its solutions because of its scientific rigor in capturing and analyzing the patient experience, as well as its ability to interpret data and create actionable insights that positively impact the clinical, safety, operational and financial performance of healthcare organizations.

PGND combines proprietary information with advanced analytics and a flexible software delivery interface to present targeted findings and predictive insights for improving patient care and outcomes.

PGND’s solutions identify key causes of variability in performance and correlate these to best practices observed across a wide population of providers.

PGND utilizes data on a secure, client-specific basis, as well as on an aggregated, de-identified basis, to enable its clients to understand their own performance with a high degree of specificity and to benchmark their performance against other providers and industry best practices.

PGND believes its clients view it as a trusted partner that shares their commitment to reducing patient suffering through continuous, patient-centric performance improvement.

Intellectual property

PGND’s registered trademarks in the United States include "Press Ganey," as well as others. PGND has one patent application on file in the United States and intend to pursue additional patents to the extent PGND believes that patent protection would be beneficial or cost effective.

Competition

Competition in the patient experience and performance improvement industry is largely based on analytical capabilities and healthcare industry expertise, breadth and depth of services, the size and quality of the underlying datasets and benchmarks, ease of use, reputation, innovation, security, price, reliability and client service.

While PGND believes that no competitor provides the breadth of its suite of solutions or the size and quality of its datasets and benchmarks, PGND nevertheless competes with other companies with regards to specific products or solutions and markets or care settings. PGND competes with various large and small healthcare data, analytics, services and consulting companies.

5% shareholders pre-IPO

Funds affiliated with Vestar        71.7%  

Dividends

No dividends are planned.

Use of proceeds

PGND expects to receive $188 million from its IPO and use it for the following:

to repay $175 million in aggregate principal amount of borrowings outstanding under its  Term Loan Facility, to pay a one-time transaction advisory fee of $8.5 million to Vestar and for general corporate purposes.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
PGND Press Ganey Holdings Inc. n/a n/a n/a 0

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