The eHealth sector has started off the New Year at an even faster pace than last year. In January 2017, 21 eHealth deals have been announced, a 91% increase from January 2016’s eHealth deals. The sector ended 2016 with 155 transactions
Of course, there was the previously mentioned takeover of CoverMyMeds LLC by McKesson Corporation (NYSE: MCK), there have been a few other notable mentions.
On January 4, 2017, Castlight Health Inc. (NYSE: CSLT) spent $135 million of its shares to acquire Jiff Inc. The company provides a HIPAA-compliant social network and digital health platform, which serves as a central hub for well-being and other benefit programs, with a single point of access for employers and employees. The purchase price produces a revenue multiple of $19.29.
The combined company will allow employers and employees manage their health benefits dollars more effectively, and is expected to generate approximately $138 to $142 million in pro forma non-GAAP revenue for the full year 2017.
Then, on January 6, 2017, Invitae Corporation (NYSE: NVTA), a genetic information company, purchased all of privately-held AltaVoice’s common stock for $5 million, with up to an additional $10 million in common stock based on certain milestones. AltaVoice, fka PatientCrossroads, is a patient-centered data company with a global platform for collecting, curating and coordinating safeguarded data from patients and clinicians to facilitate trial recruitment, education and track patient outcomes.
Invitae’s ongoing testing business combined with AltaVoice’s database of more than 75,000 patients will create a network for combining genetic information with clinical data to accelerate research, clinical trials, and disease management for the diagnosis and treatment of hereditary issues.
