HealthPort: Another e-healthcare company tries for an IPO

The company provides information technology solutions to roughly 1,900 hospitals and health systems. Essentially, the platform provides release-of-information (ROI) services. This is the process in which data in patient health records is requested by attorneys, insurance companies, government agencies and others. The upshot: lower costs.

In all, HealthPort is the largest ROI provider, with a market share of 20%. And it's a healthy market. Last year, the company posted revenues of $242.1 million (if you include the acquisition of ChartOne) and adjusted EBITDA of $28.5 million. For the most part, the business is non-cyclical, customer retention is over 95% and revenues are primarily recurring. Plus, HealthPort has high operating leverage, which helps to boost cash flows.

There is also room for growth. After all, HealthPort estimates the market size at $1.2 billion. More importantly, the U.S. government will likely work hard to move the healthcare industry to ROI approaches because of the cost savings.

The lead underwriters on this IPO include Deutsche Bank Securities and William Blair & Company. The proposed ticker is "HPRT."

Tom Taulli is the author of various books, including The IPO Primer and The Complete M&A Handbook.