Health management app developer Livongo Health was valued at $800m as of 2018, and a range of corporate investors could exit in the offering.
Livongo Health, a US-based health management technology developer backed by corporates including Merck & Co, Microsoft and Blue Cross Blue Shield of Massachusetts, has filed for a $100m initial public offering.
Founded in 2014, Livongo provides technology that helps patients live with chronic health conditions. Its offering, which initially focused on diabetes, combines blood glucose testing equipment with a smart app-connected meter and coaching and monitoring services,
The company has since expanded to conditions such as hypertension, weight management and behavioural health. It made a $15 net loss in the first three months of 2019, from approximately $32.1m in revenue.
The offering comes after $222m in funding, including a $105m round in April 2018 that reportedly valued Livongo at $800m.
The 2018 round featured pharmaceutical firm Merck & Co’s Global Health Innovation (GHI) fund as well as M12, the subsidiary of software producer Microsoft now known as M12, and health insurance provider Blue Cross Blue Shield of Massachusetts’ Zaffre Investments unit.
Echo Health Ventures, formed by healthcare provider Cambia Health and health insurer Blue Cross and Blue Shield of North Carolina, also took part. General Catalyst and Kinnevik co-led the round, which also featured DFJ, Kleiner Perkins Caufield & Byers (KPCB), Sapphire Ventures and 7wire Ventures.
M12 and Merck GHI had already backed a $52.5m round for the company in early 2017 that was co-led by General Catalyst and Kinnevik and backed by American Investment Holdings, the Singaporean state-owned investment fund EDBI and all Livongo’s existing investors including KPCB.
Livongo had secured $44.5m in series C funding in 2016, from Merck GHI, Zaffre, care provider Humana, automotive components producer Wanxiang America Corporation, Cowen Private Investments, Sapphire Ventures and existing backers General Catalyst, KPCB, DFJ and 7wire Ventures.
Merck GHI owns a 7.6% stake in the company. Its largest investor is General Catalyst, with a 25.4% share, followed by Kinnevik (12%), KPCB (8.9%) and 7wire Ventures (7.1%).
Morgan Stanley, Goldman Sachs and JP Morgan Securities have been appointed lead joint book-running managers for the offering, which is slated to take place on the Nasdaq Global Select Market.
Piper Jaffray and SVB Leerink are lead co-managers for the IPO while Canaccord Genuity, KeyBanc Capital Markets and Needham & Company are co-managers.