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FT Partners Serves as Exclusive Capital Markets / IPO Advisor on Accretive Health's Initial Public Offering

FT Partners Serves as Exclusive Capital Markets / IPO Advisor on Accretive Health's Initial Public Offering
Overview of Transaction
  • R1 RCM (formerly know as Accretive Health) completed its IPO on May 20, 2010; the stock trades under the symbol “RCM”
  • $138 million offering (including over-allotment) consisting of 67% primary shares and 33% secondary shares
  • The transaction valued the Company with a market cap of ~$1.2 billion
  • R1 provides revenue cycle management, quality and care coordination and physician advisory services to healthcare providers
  • Primary proceeds will be used for general corporate purposes including financing growth, developing new services, funding capital expenditures, acquisitions and other investments
Significance of Transaction
  • R1’s IPO was highly successful, having successfully priced in the midst of one of the most volatile markets of the last decade; second day of roadshow coincided with the “flash crash” which sent the DJIA down as much as 1,000 points in one session
  • R1 achieved a relative valuation significantly in excess of all well-known success stories in the broad Healthcare IT sector
  • R1’s IPO attracted four of the world’s top underwriters, creating a highly resilient salesforce presence in the market; bookrunners for the transaction were Credit Suisse, Goldman Sachs, JP Morgan and Morgan Stanley
FT Partners' Role
  • FT Partners served as strategic, financial and IPO advisor to R1 and its Board of Directors
  • FT Partners managed the entire IPO process, enabling management to focus on growing the business
  • FT Partners developed a comprehensive set of management and financial materials to showcase R1’s offering to potential underwriters, creating significant demand among major Wall Street institutions