IMS Seeks $1.37 Billion in IPO, Valuing Company at $7 Billion

IMS Health Holdings Inc., the health-care focused information-technology company taken private four years ago, seeks to raise as much as $1.37 billion in its initial public offering, valuing itself at almost $7 billion.

IMS and existing shareholders are offering 65 million shares for $18 to $21 each, according to a regulatory filing today. Including debt, the company would be valued at $10.6 billion based on the top of the marketed price range, more than double the $5.2 billion that sponsors TPG Capital, Canada Pension Plan Investment Board and Leonard Green & Partners LP spent to acquire the company in February 2010.

Based on the price range, IMS’s offering would be the second-largest this year in the U.S., after subprime auto lender Santander Consumer USA Holdings Inc., which raised $2.1 billion in January. IMS is going public as Castlight Health Inc. (CSLT), the health-care software startup, surged 149 percent in its debut this month, and Everyday Health Inc., a digital-health platform, is slated to price shares this week.

IMS was also weighing a sale, people famliar with the situation said in December. Its offering is scheduled to price April 3, according to data compiled by Bloomberg.

The company, based in Danbury, Connecticut, provides prescription data to drugmakers and analysts. It plans to use almost all of the proceeds from the offering to pay back debt. IMS returned to profitability in 2013, posting $82 million in net income, today’s filing shows, after posting losses the prior year. Revenue has increased 16 percent since 2009, the year before IMS’s takeover. Accounting standards changed after the buyout, the filing shows.

TPG, Canada Pension Plan Investment Board and Leonard Green are selling shares, the filing shows.

JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley are managing the offering. The company has applied to list its shares on the New York Stock Exchange under the symbol IMS.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net Elizabeth Wollman, John Lear

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