Search
Social Media
Feedback
This form does not yet contain any fields.

      MERGERS AND ACQUISITIONS UPDATES FROM BERKERY NOYES

    Entries in Healthcare IT (3)

    Friday
    Mar312017

    JONATHAN KRIEGER TO SPEAK AT EDISON PARNTERS’ 2017 STRATEGIC GROWTH SUMMIT

    Jonathan Krieger, Managing Director in the Healthcare Investment Banking Group at Berkery Noyes, will be speaking at Edison Partners’ 2017 Strategic Growth Summit on April 6th in Philadelphia.

    The event is going to feature several roundtables composed of experts focused on specific industries: Enterprise 2.0, Financial Technology, Healthcare Information Technology, and Marketing Technology. Jonathan's presentation will focus on investing and M&A trends in the Healthcare Information Technology sector.

    More information can be found here.

    Monday
    Sep092013

    HEALTHCARE IT CONTINUES TO DRIVE DEAL VOLUME

    Berkery Noyes has issued its Healthcare/Pharma Information and Technology report for half year 2013. According to the firm’s research, deal volume decreased 16 percent since second half 2012. However, the number of deals was close to the industry’s historical average for 2011 when examined on a half year basis. The median revenue multiple over the past six months declined from 2.2x to 1.9x, while the median EBITDA multiple moved slightly from 9.8x to 10.2x.

    Roper Industries was responsible for the second highest value transaction in first half 2013 with the acquisition of Managed Healthcare Associates for $1 billion. Managed Healthcare Associates offers software and data analytics to pharmacies and long-term healthcare providers, amongst many other services. Roper Industries also completed the largest deal in full year 2012, acquiring Sunquest Information Systems for $1.39 billion.

    Healthcare IT remained the most active market segment in first half 2013, representing 40 percent of the industry’s aggregate volume year-to-date. Moreover, acquirers are showing strong interest in companies that facilitate healthcare information sharing and interoperability. Allscript’s acquisition of medical software provider dbMotion for $188 million was one such example in first half 2013.

    As for other notable deals in the report, athenahealth acquired Epocrates, a provider of point-of-care medical software applications, for $214 million. This was the highest value mobile-based healthcare deal throughout the past two-and-a half years. Meanwhile, the largest Pharma IT transaction backed by a financial sponsor in first half 2013 was JLL Partners’ acquisition of BioClinica, a provider of clinical trial management solutions, for $105 million.

    Monday
    May202013

    AN OVERVIEW OF M&A IN THE HEALTHCARE IT SECTOR

    Berkery Noyes’ latest white paper covers some of the factors influencing M&A activity in the Healthcare Information and Technology (“HIT”) sector. Managing Director Tom O’Connor expands upon integrating data and workflow, legislative incentives, interest in electronic solutions, and ongoing innovation as some current key trends.

    Healthcare IT has remained a bright spot in the macro M&A market. For instance, transaction volume improved 11% from the beginning of 2011 through the end of 2012. Deal value increased 30%, totaling approximately $6.29 billion in 2012. In addition, 78% of Healthcare IT transactions during the past 24 months were completed by strategic acquirers.

    Multiples in the sector remained strong over the past two years as well. The median revenue multiple from 2011 to 2012 was 2.0x, while the median EBITDA multiple was 10.0x. Mid-market transactions in both the $20-$40 and $80-$160 million ranges received a median revenue multiple of 2.4x. Transactions above $160 million had a median revenue multiple of 3.6x and EBITDA multiple of 11.3x.

    According to the white paper, observers should expect to see an increase in deal flow and attractive prices for sellers from both strategic and financial acquirers. However, strategic buyers, as in 2012, will likely dominate the Healthcare IT buyer universe.