Based on preliminary numbers, there were 119 deals announced in June 2020, a 19% increase over deal volume in May 2020. June’s transaction volume was largely boosted by a surge in eHealth activity, which accounted for 20% of deal volume. The 24 deals announced in June even tops June 2019’s eHealth activity, where only 16 transactions were announced, according to our Deal Search Online database.
However, dollar volume in eHealth transactions declined heavily in June compared with June 2019, but that comparison might be unfair. Dassault Systemes (Paris: DSY) announced it was acquiring Medidata Solutions, Inc. (NASDAQ: MDSO) on June 12, 2019 for $5.8 billion, which overshadows June 2020’s total announced transaction value of $242.8 million.
The largest deal of the month based on disclosed dollar amount belongs to Change Healthcare, Inc.‘s (NASDAQ: CHNG) purchase of PDX, Inc. for $208 million. Change Healthcare will gain PDX’s portfolio of products, which includes the Enterprise Pharmacy System software, a comprehensive suite of products and services that range from robust data analytics to revenue cycle management, and a flexible clinical services platform.
This acquisition complements Change Healthcare’s May 2020 acquisition of eRx Network. The combination will result in faster, more integrated development and cross-selling opportunities for Change Healthcare’s combined portfolio of the pharmacy network, software, and analytics solutions.
On June 17, MTBC (NASDAQ: MTBC) announced it was acquiring Meridian Medical Management for $19.8 million from Gores Meridian Medical Holdings, LLC. MTBC operates a diverse suite of software for healthcare companies, and the addition of Meridian Medical’s information technology solutions and revenue cycle management services will provide a significant boost to its product portfolio.
Gores Meridian Medical Holdings, LLC acquired Meridian in 2013 from GE Healthcare. MTBC also acquired Meridian’s affiliate, Origin Healthcare Solutions, and its subsidiaries.
Walmart Inc. (NYSE: WMT) also jumped into the eHealth market, acquiring technology and intellectual property assets from CareZone. The assets help patients manage medication and chronic illness. Patients can use the application to scan medication labels and insurance cards to verify coverage and manage prescriptions. Walmart will also gain members of Carezone’s technology team to boost digital health solutions for the retail giant. CareZone will remain a separate company separate from Walmart.