Solganick & Co. issues its year end 2016 Healthcare IT M&A report

December 20, 2016 – Los Angeles and San Francisco, CA – Solganick & Co. has issued its latest Healthcare IT M&A report for year-end 2016. Here are the main highlights:

  • The Healthcare IT sector was active in venture capital (VC) funding, including private equity and corporate venture capital, totaled $1.3 billion in 177 deals in Q3 2016.
  • So far this year, more than $4.2 billion has been raised in 463 deals, well north of the $3.6 billion raised during the same period in 2015.
    There were 53 M&A transactions (16 disclosed) involving Healthcare IT companies this quarter, compared to the same number of transactions (7 disclosed), the previous quarter.
  • With healthcare IT industry revenue expected to grow at a compound annual rate of more than 5% through 2020, many healthcare IT companies have seen a surge of interest, driving increased competition and asset prices.
  • Most Promising Technology – Survey respondents say big data (46%) and artificial intelligence (35%) are the technical innovations that will have the greatest impact on healthcare IT in 2017. 
  • Biggest Growth Sector – Healthcare delivery/IT is cited as most likely to experience growth in the coming year (45%), ahead of more consumer-focused products including mobile health apps (8%) and wearables (7%).

 

Healthcare IT M&A

There were 53 M&A transactions (16 disclosed) involving Healthcare IT companies this latest quarter (Q3 2016), compared to the same number of transactions (7 disclosed), the previous quarter. Merger and acquisition activity was led by Mobile Health Apps with eight transactions, Practice Management Solutions companies tallied five, and Data Analytics, Population Health Management, and Remote Monitoring companies had four transactions apiece.

The top disclosed M&A transaction was the $2.35 billion acquisition of Press Ganey Associates by EQT Equity fund EQT VII. Other large transactions included: Thoma Bravo which acquired Imprivata for approximately $544 million and took the company private; Atos acquired Anthelio Healthcare Solutions from its shareholders Actis and McLaren Health Care Corporation for an enterprise value of $275 million; Evolent Health’s acquisition of Valence Health for $145 million; Loblaw Companies acquired QHR Corporation for $132 million; and iHealth Labs’ acquisition of eDevice for $106 million. mHealth Apps and Data Analytics companies have been involved in the most M&A transactions so far in 2016 with 19 and 15 transactions respectively.

 

For the complete report you can download it here: Solganick Co Healthcare IT MnA YTD 2016 Final (12-19-2016)

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