Health Catalyst to Divest Vitalware for $147 Million, Accelerating Strategic Transformation

About this update from Health Catalyst, Inc

Transaction reflects a sharper focus on AI and core technology; net proceeds expected to strengthen balance sheet and provide financial flexibility SALT LAKE CITY, June 04, 2026 (GLOBE NEWSWIRE) -- Health Catalyst, Inc. (“Health Catalyst” or the “Company,” Nasdaq: HCAT) today announced it has signed a definitive agreement to divest Vitalware, LLC and the Vitalware business unit, its mid-revenue cycle business, to Med-Metrix for a total consideration of $147 million in cash. This divestiture sharpens Health Catalyst's focus on driving measurable improvement for health systems across cost, clinical, and consumer performance, and the Company expects it to accelerate the broader transformation underway. “This is a big step forward for Health Catalyst. We are concentrating our business around the areas where we have the deepest conviction, and we plan to put the capital structure in place to back our long-term strategy. Vitalware is a great business, and we are pleased to have found a partner in Med-Metrix who is well positioned to carry it forward.”— Ben Albert, CEO, Health Catalyst Health Catalyst expects the transaction to strengthen its balance sheet and provide increased financial flexibility to prioritize the core technology and AI investments. At its core, the Company’s strategy is built on 18 years of proprietary healthcare improvement data and $2.8 billion in measured outcomes, a foundation that grows more complete with every outcome measured and that serves as the foundation for an AI roadmap that will enable health systems to turn their own results into specific, prioritized action. The Company plans to use net proceeds from the divestiture upon closing, combined with cash on hand, to fully repay and terminate its existing senior secured term loan facility of approximately $160 million of outstanding principal as of March 31, 2026, plus additional amounts in interest, prepayment premiums and costs. Med-Metrix, a technology-enabled revenue cycle management company serving provider organizations across the country, will acquire Vitalware. Med-Metrix's resources and focus in revenue cycle management position it to invest in the business more deeply. A best-in-KLAS leader with approximately $37 million in fiscal year 2025 revenue, Vitalware provides software for the financial operations of a health system, a category distinct from the clinical and opera...

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