DivestmentJun 4, 2026, 09:06 AM
Health Catalyst to Divest Vitalware for $147M Cash
AI Summary
Health Catalyst, Inc. announced a definitive agreement to divest its Vitalware business unit, a mid-revenue cycle business, to Med-Metrix for $147 million in cash. This divestiture is expected to sharpen Health Catalyst's focus on core technology and AI investments, accelerating its broader transformation. The company plans to use the net proceeds, combined with cash on hand, to fully repay its existing senior secured term loan facility of approximately $160 million.
Key Highlights
- Health Catalyst to divest its mid-revenue cycle business, Vitalware, LLC, to Med-Metrix.
- Total consideration for the divestiture is $147 million in cash.
- Vitalware generated approximately $37 million in fiscal year 2025 revenue.
- Net proceeds from the divestiture, plus cash on hand, will repay the $160 million senior secured term loan.
- The transaction is expected to close in 2026, subject to closing conditions.
- Divestiture aims to sharpen Health Catalyst's focus on core technology and AI investments.
Price Impact
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