Imprivata to be privately held after Two years as public organization

Imprivata, a famous publicly owned vendor of user and sufferer authentication, enterprise single sign-on and protect messaging software for the healthcare sector, is becoming a privately held organization, with investment firm Thoma Bravo purchasing the company for over $554 million.

That is a hefty multiple for an industry that in the 1^st quarter of the year 2016 had revenue of $31.5 million and an average loss of $6.7 million; overall, Thoma Bravo is paying almost 4 times projected yearly revenue for Imprivata.

The technology of company particularly assists healthcare contributors to secure patient data and comply with regulations, stepped into the public just 2 years ago, with an initial public offering cost for its stock of $15 a share. The stock was selling for $14.50 a share before the sale was declared, which will provide shareholders $19.25 a share in cash.

The acquisition is a strategic chance for the investment firm, claims John Osberg.

Imprivata, Osberg points out, is best-of-breed companies with products that assist hospitals to move from systems that need clinicians and workers to utilize pagers or cellphones for communication. Cell phone utilizes within hospital walls are mostly restricted because of concerns over security and medical device interference, but workers still use their phones. Pagers are inefficient devices that alerts customers to events, but only if customers have their pagers with them. Neither phones nor pagers integrate into a coherent workflow for staff.

It takes a long period for healthcare agencies to change, Osberg claims, but they’re changing now to adopt improved and more secure communication devices. “Imprivata has much intellectual property and interfaces with several IT vendors. That is worth a lot of money.”

Other reasons the purchase makes sense involve the availability of a seasoned management team and great growth prospects, he further adds. “It would seem that there is a strong pipeline of new growth and products that would enable Thoma Bravo to value the company at that premium.”

That Imprivata is losing money should not be a concern, Osberg states, because he considers management has been contributing in the company. Moreover, when the acquisition is complete, as a privately held company, Imprivata will not be restricted by the regulatory burdens that public companies confront, and that’ll save it money, Osberg notes. “It’ll be a leaner, more effective company.”