Cardinal Health Buys NaviHealth
Rumors surfaced last week that Nashville-based NaviHealth, a portfolio company of Welsh, Carson, Anderson & Stowe, was about to be acquired by Cardinal Health (NYSE: CAH). Our friend in Nashville, Milt Capps, published the story on his Venture Nashville Connections blog on August 24. Sure enough, the story was verified on August 25 when Cardinal issued a FAQ statement about the $290 million deal. What does a medical products distributor like Cardinal see in a post-acute care coordinator like NaviHealth? Quite a lot, since its sweet spot is managing bundled payments in the post-acute continuum of care. The acquisition of even 71% of NaviHealth gives Cardinal Health scale and the... Read More »Premier, Inc. Makes Two eHealth Deals
August is a busy month for Premier, Inc. (NASDAQ: PINC), which bills itself as a healthcare improvement company, with an alliance of 3,400 hospitals and 110,000 other providers. In the first two weeks of August 2015, the company has announced two acquisitions totaling $465 million. The first deal, for CECity, Inc. was announced on August 4 ($400 million); the second, for Healthcare Insights, LLC, was announced on August 12 ($65 million). The former company specializes in performance improvement, while the latter provides financial management systems to hospitals and healthcare systems. In August 2014, Premier acquired TheraDoc, a clinical informatics company, from Hospira (NYSE: HSP) for... Read More »Digital Health Care M&A
Mergers and acquisitions in the digital health category have gone through boom times and relative obscurity since the Great Recession. Companies offering revenue cycle management have always been popular targets, while data analytics and population health management companies have more to prove when it comes to ROI. With IBM (NYSE: IBM) making a splash this year with three announced acquisitions and $1 billion in spending publicly disclosed, this category is seeing more action. Through mid-August, we’ve recorded 72 transactions for eHealth companies, and $2.5 billion spent so far. Looking at the chart below, this sector is on track for another busy year. Digital Health Care Deals, 2010 to... Read More »IBM Pays $1 Billion to Help Watson ‘See’
Last April, IBM (NYSE: IBM) rocked the Big Data world with the announcement that its supercomputer, called Watson, would be the center of its new Watson Health unit. At the same time, it announced the acquisitions of Phytel, a population health platform, and Explorys, a cloud-based healthcare intelligence company, to launch the effort. Last week, Watson got some “eyes,” as IBM announced its third and largest transaction (prices were not disclosed for the previous two). It plans to acquire medical imaging management firm Merge Healthcare Inc. (NASDAQ: MRGE) for $7.13 per share in cash, for a total transaction value of $1 billion. Merge’s technology platforms are used at more than 7,500 U.S.... Read More »Deal Volume Rose in July
July’s combined transaction total hit 127 deals, up 2% compared with the bang-up month of July 2014, which had 124 transactions. The Services sector had a strong performance, accounting for 60% of deal volume. Long-Term Care made up 27% of the volume overall with 34 announced transactions. That equalled the record set last July for the sector, and will probably break it as more deals come to light. The Managed Care sector posted some extra activity, although seven deals versus two deals the month prior and a year ago isn’t moving the needle very high. July 2015 DealsShare of Total Services Behavioral Health Care32% Home Health & Hospice23% Hospitals76% Labs, MRI & Dialysis43%... Read More »Schedule a demo
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