eHealth Activity Drove Busy June
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... Read More » MTBC Adds Meridian Medical to Boost Healthcare IT
MTBC (NASDAQ: MTBC) has announced a new acquisition, significantly expanding its revenue cycle management (RCM) and healthcare IT capabilities. The company revealed on June 17 it purchased Meridian Medical Management, a healthcare IT company that delivers advanced healthcare information technology solutions and RCM services to thousands of healthcare providers nationwide. Gores Meridian Medical Holdings, LLC (Gores) has been the owner of Meridian (f.k.a GE Healthcare Strategic Sourcing) since 2013 when it purchased the company from GE Healthcare for an undisclosed price. Gores is selling Meridian for $19.8 million. The price breaks down to $15 million cash and the assumption of $4.8... Read More » WELL Health Boosts Digital Health Portfolio
WELL Health Technologies Corp. (TSX.V: WELL) has added another digital health firm to its growing portfolio. This week, the Canadian company announced it is acquiring Indivica, Inc. for $4.47 million (CA$6.2 million), consisting of CA$3.41 million in cash upon closing; CA$1.55 million in WELL common shares and a time-based earn-out of CA$1.24 million paid within 120 days of closing. Indivica provides fully hosted electronic medical record (EMR) software and services to more than 390 clinics serving more than 2,000 physicians and medical practitioners in Ontario. On a trailing 12-month basis, Indivica generated approximately US$1.3 million in total revenue, the vast majority from recurring... Read More »
NaviHealth Changes Owners – Again
The merry-go-round of owners may finally be slowing for naviHealth, a digital healthcare company that helps health systems and insurers manage post-acute care bundled payments. In its third change of command, naviHealth is now part of OptumHealth, which is part of the Optum division of UnitedHealth (NYSE: UNH). It now manages post-acute services for 4.5 million Medicare Advantage members and nine of the top 10 health systems. NaviHealth was founded in 2012 by Tom Scully, former administrator for the Centers for Medicare and Medicaid Services (CMS), who joined Welsh, Carson, Anderson & Stowe in 2004. In August 2015, WCAS sold a 71% stake in the company to Cardinal Health (NYSE: CAH) for... Read More »
Change Healthcare Lives Up to its Name
This is an eventful year for Change Healthcare (NASDAQ: CHNG). Not only did it split from longtime partner McKesson Corporation (NYSE: MCK) in March, it bought and sold some companies in May. First, the split with McKesson. Back in June 2016, McKesson acquired a 70% stake in Change Healthcare, then backed by Blackstone Group and Hellman & Friedman. At the time, Change provided software, analytics, and network solutions aimed to give users more effective communications, payments, and actionable insights. The merger combined substantially all of Change Healthcare’s business and the majority of McKesson’s Technology Solutions into a new company, still called Change Healthcare.... Read More »