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Extend Health Hopes to Raise $75M in IPO

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Extend Health Inc., a health exchange company, hopes to raise about $75 million with an initial public offering (IPO) of stock, according to a registration statement filed with the U.S. Securities and Exchange Commission.

Extend Health, San Mateo, Calif., wants to list its stock on the New York Stock Exchange using the ticker symbol “XH”

The company runs the ExtendRetiree program, a private health exchange that helps employers switch retirees from traditional group retiree health plans into individual Medicare Advantage, Medicare supplement and Medicare Part D prescription drug plans.

Instead of paying paying the full cost of the new individual Medicare coverage, or a fixed percentage of the cost, the employer pays a set amount for each retiree who switches, the company says.
The company gets most of its revenue from sales commissions. It earned $2 million in net income in the third quarter of 2011 on $16 million in revenue.
Extend Health says its clients include more than 30 Fortune 500 companies.
The company has not yet indicated how many shares it plans to offer or the price range for the shares.
Extend Health says it plans to use the offering proceeds to repay a loan with Silicon Valley Bank. The company also plans to expand sales and marketing and may use some proceeds to acquire businesses, products, services or technologies.
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