Definitive Healthcare Corp T.DH.R

Primary Symbol: DH

Healthcare Medical Devices

Definitive Healthcare Corp. is engaged in transforming data, analytics, and expertise into healthcare commercial intelligence. The Company’s solutions are designed to provide information on healthcare providers and their activities to help its customers optimize everything from product development to go-to-market planning and sales and marketing execution. Its software-as-a-service (SaaS) platform uses deep analytics and data science to help customers develop data-driven strategic decisions, such as finding new markets to enter, building comprehensive go-to-market strategies, accessing tactical information to help target the right decision makers and improving win rates with detailed contextual information. It transforms data into intelligence through artificial intelligence (AI) and machine learning (ML) algorithms that ingest, cleanse, link, and analyze the data to create new intelligence and analytics. All of its business is conducted through AIDH TopCo, LLC (Definitive OpCo).

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Definitive Healthcare Corp

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Post by retiredcfon Dec 08, 2016 7:59am

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Post# 25570223

CIBC

Even more optimistic than RBC. GLTA

DH Corp.

A Sale In The Works?

What's The Event

CHANGE IN RATING - UPGRADE

DH announced that it has formed a Special Committee of
independent Directors to address expressions of interest from certain third parties to acquire DH.

We believe that the Special Committee will look at the sale of the entire business, rather than the divestiture of the cheque business. We view a cheque business divestiture as unlikely given recent cheque volume declines, a limited pool of buyers and the strong cash flow conversion of the division.

We expect that the entire business may be attractive to a strategic
buyer that could find cost synergies and leverage DH's fintech
products/customer base. We view a sale to a financial buyer as
unlikely given existing leverage ratios.

The company is currently trading at 8.6x forward EBITDA versus US fintech peers at 13.9x. We expect that in a take-out scenario the EPS 2014 2015 2016 2017 business could be worth between $24/share to $33.50/share, with a variety of scenarios discussed in the report.

As of December 7, our rating goes to Sector Outperformer (from Sector Performer) and our price target to $29 (from $23). Our $29 price target is based on 7x the Canadian business (4x cheques/10x rest of Canada) and 12x the US business (a two-point discount to peers given recent results).