Medical Software Maker Imprivata Raises $66.3M in IPO

The Boston-area tech industry saw another company graduate to the public markets on Wednesday with Imprivata’s IPO, which netted the healthcare software provider an estimated $66.3 million.

Imprivata shares (NYSE: IMPR) traded slightly higher in early market activity, which is a good sign that the company and its earlier investors didn’t leave too much money on the table.

The Lexington, MA-based company was founded in 2002 in the startup incubator run by Polaroid. Its original aim was a more general field of identity management and user authentication software, but the company eventually found a receptive market in the healthcare industry.

Today, Imprivata is best known for its software that helps doctors and other providers access health IT systems and electronic medical records. The company says its flagship software is used in about 18 percent of U.S. hospitals, along with facilities in other countries. In its IPO filing, Imprivata said it sees potential growth in adding other types of healthcare practices to its portfolio.

Imprivata’s revenue has climbed in the past three years, hitting $71.1 million in 2013. But the company’s profitability has worsened over that span, and Imprivata ended last year with a $5.5 million loss.

Imprivata’s biggest stockholders before the IPO were venture firms General Catalyst Partners, Highland Capital Partners, and Polaris Partners, each of which owns about 25 percent of the company.

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