IMS Health Said to Be Considering IPO in 2014 After 2010 BuyoutDavid Welch and Jodi Xu
IMS Health Inc., the health-care focused information-technology company taken private almost four years ago, is considering an initial public offering in 2014, three people with knowledge of the matter said.
IMS, owned by Canada Pension Plan Investment Board, TPG Capital and Leonard Green & Partners LP, may also explore a sale process, said the people, who asked not to be identified because the process is private. IMS’s owners may seek a valuation for the company of at least $8 billion, the people said. The company is in the early stages of considering its options and hasn’t hired a financial adviser, the people said.
IMS, which provides prescription data to drugmakers and analysts, was acquired for about $5.2 billion including debt in early 2010. The Danbury, Connecticut-based company is more likely to go public than seek a buyer because there are few in its industry large enough to acquire it, the people said.
IMS, founded in 1954 and with operations in more than 100 countries, has grown since it was acquired, with at least seven acquisitions in health-care and pharmaceutical technology and information services, according to data compiled by Bloomberg.
A message left on IMS’s media line seeking comment on its plans wasn’t returned. Representatives for CPP and TPG declined to comment on the company’s plans. A spokesman for Leonard Green didn’t respond to a request for comment.
The purchase of IMS was the second-largest medical information-systems acquisition after McKesson Corp.’s almost $14 billion takeover of health-care software company HBO & Co. in 1999, according to data compiled by Bloomberg.