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The Framingham software company rises to market debut on Wednesday

The Framingham software company rises to market debut on Wednesday

“We see this as a great opportunity to accelerate our mission,” said Jason Krantz, Definitive’s CEO. “At this point, we expect that we ourselves will be a cornerstone of Boston, similar to a HubSpot or a Wayfair over time. As a proud Bostonian, I want to see another company go public, keep going and be a franchise player. ”

Krantz launched the company in 2011 to offer market intelligence about the healthcare industry to companies that sell everything from MRI clothing to masking tape. Today, the Framingham-based firm has more than 2,600 customers — banks, architects, even a jam-maker — who subscribe to its software to identify potential sales customers and find purchasing information at hospitals, medical groups and other healthcare providers. Using artificial intelligence and data analytics, Krantz said, Definitive is trying to address the challenges facing companies as they enter the increasingly complex and broken healthcare market.

Definitive generated $ 118 million in revenue last year and reported a net loss of $ 51 million, though Krantz said the company has been solidly profitable on an operating basis for much of its existence. (CFO Rick Booth says that although the company primarily measures itself by cash generated by operations, accounting for a net loss in 2020, mainly due to non-cash fees associated with an investment in private equity in 2019.) It has made five acquisitions along the way and employs about 650 people today, most of them based in Framingham, where it rents about 100,000 square feet across two office buildings near the Massachusetts Turnpike.

The company does not use the listing proceeds to pay out existing investors, including Boston private equity firms Advent International and Spectrum Equity. Instead, Krantz plans to plow the money for research, development and acquisitions. His workforce has grown by about 100-plus positions in the past year. Krantz expects to see similar job growth within the next 12 months.

To find talent, Krantz said he can not think of a better place than Greater Boston, with the region’s surplus of software companies from business to business, its density of biotechnology and its famous healthcare business.

“It’s just a hub for all that kind of activity,” Krantz said of the region. “We really need the best and smartest people to solve these problems.”

Jon Chesto can be reached at [email protected] Follow him on Twitter @jonchesto.

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