IPOs/Recent Issues: VANTAGEMED –

Rancho Cordova, CA

Went public 2/15/2000 at $12 apiece

Filing Range: 3 mil. shares @ $10 to $12

Shares Outstanding: 8.6 mil. shares

Underwriters: Advest

J.C. Bradford (Joint)


(Data except per-share in $ thousands)


12/98 9/99

Total Revenue $23,388 $20,511

Net Loss -9,764 -5,269

Net Loss Per Share -3.22 -1.54

The Company:

VantageMed provides healthcare information systems and services distributed to over 10,000 customer sites through a national network of 15 regional offices. Their software products and services automate administrative, financial, clinical and management functions for physicians, dentists, and other healthcare providers. Since 1996, in excess of 80% of revenues have come from sales to existing customers. Since July 1997, Vanatagemed has acquired 27 healthcare information systems companies, building a national distribution network. The healthcare industry’s information technology is often outdated, leading to rising healthcare costs. The Internet has created a new means for physician organizations to interact directly with patients and other healthcare participants. The company’s strategy is to expand market share through acquisitions and to increase recurring revenues. Vantagemed operates with a negative cash flow primarily due to acquisition expenses, and the costs of improving operating, sales and product development. In the first two years of operation, net losses of $7.3 million were incurred.


Net proceeds estimated to be $26.5 million will be used to repay promissory notes of $1,944,000, towards working capital and general corporate purposes, including financing possible acquisitions of complementary products, technologies and businesses. Pending application of the net proceeds as described above, net proceeds are inteneded for investment in short-term, investment-grade, interest bearing investment securities.

Venture Backers:

QuadraMed Corp., Friedli Corporate Finance Inc., Venturetec Inc.

Board Members:

Peter Friedli, Friedli Corporate Finance Inc. September 1999