Accolade, a Philly-Seattle health IT company, announces terms for IPO

Connected healthcare company Accolade, with headquarters in Plymouth Meeting and Seattle, set terms this week for its IPO, GeekWire first reported.

Founded in 2007, Accolade could be the first company in both regions to go public in 2020. The process started back in February, when it announced it had filed its S-1 form. Accolade helps employees at its client companies navigate their health benefits with a range of tech, from machine learning to mobile apps. Employers are charged their subscription fee based on the total number of employees.

The company is pricing 8.75 million shares between $19 and $21, raising up to $211 million and valuing the company at $1 billion, GeekWire reported. It will trade on the Nasdaq exchange under the ticker ACCD.

The company’s latest S-1 registration filing shows its total revenue was $76.8 million, $94.8 million and $132.5 million for its fiscal years ending Feb. 28 of 2018, 2019 and 2020, respectively. Net losses were $61.3 million, $56.5 million and $51.4 million.

Montco-based Tom Spann, founder of the connected healthcare company, left the CEO role in 2015 and has since focused energy on a new venture, Brightside, which is focused on reducing the toll of “financial stress” on employees.

“At Accolade, I saw families we served have their financial situation get in the way of  getting healthcare,” Spann told Technical.ly in 2018. “Financial stress drives absenteeism.”

Accolade estimates its total addressable market to be approximately $24 billion.

“Our core market is currently comprised of self-insured employers, inclusive of state and local governments and unions,” the company wrote in its filing. “Based on the estimated number of addressable employees and the PMPM fee opportunity of our current offerings, we believe the self-insured employer market alone represents at least an $11.7 billion addressable market.”

The company has raised more than $230 million in its life, and Comcast Ventures had about 7% stake at offering. Accolde’s current CEO, Rajeev Singh, owns a 6.4% stake.

Between the company’s Seattle and Plymouth Meeting offices, Accolade employed 1,174 employees as of November 2019.