Healthcare tech company Accolade reportedly hires banks ahead of potential IPO

Raj Singh, CEO of Accolade. (GeekWire Photo / Dan DeLong)

Accolade is taking steps toward going public later this year, according to a new report.

CNBC reported that the healthcare tech company hired Goldman Sachs and Morgan Stanley, among others, as advisers for a potential initial public offering. The company could file to go public later this year, but CNBC reports the strength of the economy and the outcome of the 2020 presidential election may play into the decision.

We’ve reached out to Accolade for comment, and we will update this post if we hear back.

Accolade helps employees navigate their health benefits. The company uses a range of technologies from machine learning to mobile apps to make it easier for employees to access care. Employers are charged a subscription fee based on the total number of employees.

Accolade’s customers include large employers from a range of industries, such as Comcast, Lowe’s, Amerigas and Temple University Health Systems. The company brought on more than 500,000 new members in 2018.

Accolade splits its headquarters between Seattle and Philadelphia and employs more than 1,000 people nationally. The company plans to double its headcount in Seattle after scooping up a new downtown office space last year.

Asked about an IPO at the time, Accolade CEO Raj Singh said the company was, for now, focused on growing users and “hitting our profitability milestone.” Singh previously co-founded travel expense software giant Concur and brought on fellow Concur co-founder Mike Hilton as chief product officer at Accolade.

The company has raised more than $230 million to date, with a valuation around $620 million, according to PitchBook. Investors include Andreessen Horowitz, Carrick Capital Partners, Madrona Venture Group and McKesson Ventures, among others.

Accolade is one of several digital health startups growing in the Pacific Northwest and climbing the ranks of the GeekWire 200, our leaderboard of privately held startups in the region. Accolade currently ranks No. 6 on the list.

In October, Accolade landed a $20 million investment from health insurance giant Humana as part of an ongoing partnership between the two companies. A few weeks later it brought in Dr. Shantanu Nundy — who previously worked on digital health initiatives for the World Bank — to be chief medical officer. 

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