Payments company Zelis Healthcare hires Goldman Sachs and JPMorgan for an early 2026 IPO

Zelis Healthcare is making significant strides towards its initial public offering (IPO), as reported by insiders familiar with the situation. The company has confidentially submitted its S-1 filing and has engaged financial heavyweights Goldman Sachs and JPMorgan to facilitate its IPO journey. Initially, Zelis aimed for a public offering by the end of 2025 but has since shifted its sights to the first quarter of 2026. The health technology firm specializes in providing software solutions that help healthcare providers manage medical claims and streamline electronic payments, and it is currently on track to generate nearly $1 billion in earnings before accounting for taxes and interest. Zelis is predominantly owned by prominent private equity firms Bain Capital and Parthenon Capital. Its anticipated IPO comes on the heels of a relatively quiet year for healthcare IPOs, with notable exceptions including Hinge Health and Omada Health, both of which successfully went public recently. Despite a challenging market environment, which has led many healthcare firms to delay their IPO plans until 2026 or beyond, the broader tech IPO market has shown signs of recovery with successful launches from companies like Figma and Klarna. Observers indicate that Zelis's strong financial performance and stable business model position it as a viable IPO candidate. In December, Zelis disclosed that it had sold a minority stake to a consortium of investors led by Mubadala Capital, which also included Norwest Venture Partners and HarbourVest. This transaction reportedly valued the company at approximately $17 billion. Founded three decades ago as Stratose, Zelis initially focused on medical claims management. The company's trajectory shifted in 2019 when it merged with the payment platform RedCard, marking its foray into healthcare payments technology. Bankers have noted that Zelis's upcoming IPO could mirror the successful debut of Waystar, which focuses on revenue cycle management for medical facilities. As the healthcare landscape evolves, with AI-driven startups like Abridge gaining traction, Zelis continues to carve out its niche by enhancing payment and communication processes within the healthcare system. Its recent acquisition of assets from Medxoom to develop a mobile-first price transparency platform underscores its commitment to innovation in healthcare payments.