News and Research

Solganick & Co. Issues Healthcare IT M&A Update for Q3 2017

December 8, 2017 – Los Angeles and San Francisco, CA – Solganick & Co. has issued its latest Healthcare IT M&A Update for Q3 2017. The following highlights the key items and findings of the report:

  • In Q3 2017, there were a total of 54 Healthcare IT M&A transactions, compared to 56 in Q2 2017. Healthcare practice-focused companies made up 36 of the 54 transactions and consumer-focused companies made up 18 of the transactions.
  • Practice Management Solutions and Data Analytics companies were involved in the most M&A transactions in Q3 2017.
  • Prominent M&A transactions in Q3 2017 included: Internet Brands acquisition of WebMD for $2.8B, Optum’s acquisition of The Advisory Board Company for $1.3B, Navicure’s acquisition of Zirmed for $750M., and PRA Health Sciences acquisition of Symphony Health for $530M.
  • Valuations for publicly traded Healthcare IT companies averaged 4.3x EV/Revenues this latest quarter. EV/Revenue and EV/EBITDA multiples have since rebounded with an average of 4.0x and 15.9x, respectively.
  • According to a Donelly Market Spotlight survey, 60% of industry respondents predict Digital Health to be the top Healthcare sub-sector to see growth in M&A activity in 2018.
  • Q3 2017 Healthcare IT VC funding saw $1.5 billion in 227 deals, a 38 percent decrease compared to the $2.6 billion raised in Q2 2017. However, VC funding in the first nine months of 2017 increased 31 percent from the same period in 2016. This past quarter, Healthcare Practice-focused companies received $731 million in 78 deals while Healthcare Consumer-centric companies raised $751 million in 149 deals.
  • Notable M&A transaction announced in Q3 2017: WebMD acquired by Internet Brands, a portfolio company of KKR, for $2.8 billion.


You can download the complete report here: Solganick Co Healthcare IT MnA Update Q3 2017 final


About Solganick & Co.

Solganick & Co., Inc. is an independent investment banking and M&A advisory firm focused exclusively on the global technology and digital media industry sectors, including an active practice within healthcare IT. We advise buyers and sellers of companies and efficiently execute M&A transactions that help increase shareholder value. Our professionals have advised on $20+ billion in M&A transactions to date and have current clients and relationships globally with entrepreneurs, companies and leading private equity firms within the sectors we cover.

Please contact us for information regarding this report or to inquire about an M&A transaction.