News and Research

What were the key Healthcare IT M&A trends and valuations in Q3 2017?

In Q3 2017, the Healthcare IT M&A market saw 54 transactions, with Practice Management Solutions and Data Analytics leading activity. Key trends included prominent acquisitions like WebMD for $2.8B and Optum for $1.3B, while publicly traded Healthcare IT companies averaged 4.3x EV/Revenues. VC funding decreased by 38% compared to Q2 but increased 31% year-over-year for the first nine months of 2017. Solganick & Co. issued this update highlighting these findings, noting that 60% of industry respondents predict Digital Health to be the top sub-sector for M&A growth in 2018.