December 24, 2020 – Solganick & Co. has issued its latest Healthcare IT M&A Update for Q3 2020.
Healthcare IT M&A activity experienced a significant return in Q3 2020, driven by the stabilization of existing operations and renewed interest in transaction pursuit. This resurgence was further enabled by the return of debt-financing availability and a robust public market environment. Solganick & Co.'s Q3 2020 report highlighted that the quarter alone saw 13 "mega-deal" financings exceeding $100 million, alongside notable mergers like Teladoc Health and Livongo.
The complete report is available for download here: Solganick & Co. – Healthcare IT Q3 2020 – Final
The following summarizes the key highlights of the report:
Healthcare IT M&A activity returned in Q3 2020
- The initial uncertainty and need to stabilize existing operations subsided, allowing for renewed focus on and interest in transaction pursuit
- Debt-financing availability returned in Q3, further enabling market participants to transact
- The healthcare industry continues to experience sudden and long-lasting changes due to the pandemic
- Wide adoption of telemedicine
- In-home and remote care capability focus
- Utilization volatility, particularly for elective care
- Removal of regulatory hurdles (temporary)
- Notable Healthcare IT transactions included the announced merger of Teladoc Health and Livongo in August,
Waystar’s $1.3 billion acquisition of RCM technology company eSolutions, and Health Catalyst’s acquisition of healthfinch - IPO and financing activity during the quarter was extremely robust
Significant IPO activity, aided by strong public market environment
13 “mega-deal” financings of over $100 million were announced in Q3 2020 alone
Solganick & Co. is a data-driven investment bank and M&A advisory firm with expertise within the healthcare IT sector. Its deal team has completed multiple M&A transactions within the healthcare industry sector for fast growing, mid-market, and large enterprise clients. To inquire about an M&A transaction, please contact us.