HCAT Health Catalyst, Inc.
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
Actionable Insight
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.
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
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 | ||||
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Jun 4, 2026
8d ago
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8-K
| $1.94 $1.93 | ▼ −0.52% | ▲ +2.08% | $1.85 (−4.64%) |
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Jun 3, 2026
9d ago
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DEFA14A
| $1.94 $1.93 | ▼ −0.52% | ▲ +2.08% | $1.85 (−4.64%) |
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May 11, 2026
4w ago
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8-K
| $1.48 $1.48 | · 0.00% | ▲ +0.54% | $1.85 (−25.00%) |
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May 1, 2026
6w ago
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Press Release
| $1.45 $1.57 | ▲ +8.28% | ▲ +8.62% | $1.85 (+27.59%) |
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Apr 30, 2026
6w ago
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10-K/A
| $1.45 $1.57 | ▲ +8.28% | ▲ +8.62% | $1.85 (+27.59%) |
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Apr 30, 2026
6w ago
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Press Release
| $1.25 $1.45 | ▲ +16.00% | ▲ +15.78% | $1.85 (+48.00%) |
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Apr 27, 2026
6w ago
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8-K
| $1.37 $1.34 | ▲ +2.19% | ▲ +1.70% | $1.85 (−35.04%) |
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