Autism Therapy Tops PE’s List in December
A good number of behavioral health care deals have been announced in Decmeber 2019 and the majority of those target companies providing therapy services to individuals with autism and intellectual and developmental disabilities (I/DD). Seven deals in the Behavioral Health Care sector are on the books mid-way through the month and five offer some form of applied behavior analysis (ABA) therapy or services. The two remaining deals target companies specializing in residential substance abuse treatment and inpatient addiction and eating disorders for teens. Thomas H. Lee Partners announced the only deal to disclose a price. The firm paid $415 million (16.6x EBITDA) for Centria Healthcare, a... Read More »
Telehealth Deals Pick Up in 2019
Digital health is hot, if deal volume is any measure (and we think it is). By mid-November, some 195 transactions are already on the books. That total is sure to surpass the 204 deals announced in all of 2018, which set a new record. In our DealSearchOnline database, the eHealth sector has grown in scope from simply electronic health records and revenue cycle management deals to include artificial intelligence and blockchain transactions in recent years. Telehealth has been around for some time, with the earliest deal in our database recorded in 2001. But the technology didn’t really take off, deal-wise, until 2016, when the number of deals rose to six. That doesn’t sound like... Read More »
Autism Services Provider Goes to Golden Gate Capital
Another private equity firm has thrown its hat in the autism ring. Golden Gate Capital announced its acquisition of Invo Holdings, LLC from The Jordan Company. The Jordan Company and Invo’s management will retain minority ownership stakes in the business. Invo Holdings, based in Jamison, Pennsylvania, provides a range of multi-disciplinary, research-based therapy services to infants, toddlers and school-aged children with various developmental delays, including autism, in homes, at schools and in community-based centers across 27 states. It 2,500 clinicians include board-certified behavior analysts, registered behavioral technicians, speech-language pathologists, occupational and... Read More »
More Competition Coming in Behavioral Health Care
It’s been a wild ride in recent years. Merger and acquisition activity in the Behavioral Health Care sector soared to a record 91 transactions in 2018, an increase of 264% over 2014 (25 deals) and up 60% compared with 2017 (57 deals). The majority of the 2018 deals—63%, in fact—were made by private equity firms or their portfolio companies. For the record, PE firms accounted for 46% of all acquisitions and 24% of the spending in the nine healthcare services sectors last year. M&A in this sector hasn’t been as robust in 2019. With 50 deals reported through the first week in September, the sector isn’t likely to see another 40 announced by the end of the year. One reason for the slowing... Read More »
Behavioral Health Care Sector Recovers in Q2:19
After a slump in the first quarter of 2019, the Behavioral Health Care sector rebounded in the second quarter. Twenty-three deals were announced in the second quarter of 2019, a 64% increase over the 14 deals in the first quarter, and a slight 10% increase compared with the same quarter last year. And much like the previous quarter and Q2:18, none of the deals disclosed financial terms. However, if prices had been disclosed, the largest would likely have been Anthem Inc.’s (NYSE: ANTM) acquisition of Beacon Health Options from Bain Capital Private Equity and Diamond Castle Holdings. Beacon offers clinical mental health and substance use disorder management, a comprehensive employee... Read More »Schedule a demo
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