Varian Medical Makes Two Deals in May
Varian Medical Systems (NYSE: VAR) is on the move again. The Palo Alto, California-based medical device maker announced two deals in May 2019 targeting two very different companies. Varian (market cap $11.6 billion) designs, manufactures, sells and services medical devices and software products for treating cancer and other medical conditions. The earlier deal, announced on May 9, brought aboard privately held cardiac ablation firm Cyberheart, based in Sunnyvale, California, for an undisclosed amount. CyberHeart’s intellectual property covers cardiac radioablation, which involves using radiation in the heart and other forms of radiosurgery for certain heart diseases. The second deal,... Read More »
Hospital M&A: Bigger Isn’t Always Better
That was the week that was. Two huge hospital mergers came to an end, one successfully and the other, not. In announcing the end results, CEOs involved in those deals each emphasized their goal was not about “getting bigger,” but to deliver better health care to more patients. Seriously, what CEO is going to say they just need more facilities to boost the bottom line and don’t care about patients? First, the deal that crossed the finish line. For 15 months, Catholic Health Initiatives and Dignity Health negotiated the details of the definitive agreement they signed in December 2017. The deal closed on February 1, creating one of the largest not-for-profit health systems in the country with... Read More »
Healthscope Changes Hands Again
Healthscope Ltd. (ASX: HSO), Australia’s second largest private hospital chain, is being sold once again, this time for $4.14 billion, or 1.8x revenue. The Melbourne, Victoria-based company owns 43 hospitals across all states in Australia and is the largest pathology services provider in New Zealand, with 24 laboratories. Three buyers are involved, two of them real estate investment trusts (REITs). First, Brookfield Business Partners LP (NYSE: BBU), a subsidiary of Brookfield Asset Management Inc. (NYSE: BAM), will acquire 100% of Healthscope’s shares, priced at $1.81 (AU$2.50) per share. That returns approximately $1.0 billion in equity. The remainder will be paid with $1.4... Read More »
Hospital Deals Picked up in Q4:18
Mergers and acquisitions in the Hospital sector have risen steadily since a pronounced drop in the second quarter of 2018. The fourth quarter ended with 20 deals, up 18% quarter over quarter, but down 20% year over year. The 20 deals made up 25% of the 79 deals announced in the previous 12 months. Community Health Systems, which has divested 43 underperforming facilities or ones in non-core markets in the past two years, sold seven hospitals in the fourth quarter of 2018. Four were standalone facilities throughout South Carolina, two were part of the Mary Black Health System that is also in South Carolina and the last was in Salem, New Jersey. The selling will continue in 2019, as CHS CEO... Read More »
2018’s Biggest Healthcare Deals by Sector
2018 isn’t quite in the rearview mirror yet. We’re still scouring the news feeds for straggling deal announcements, and that never stops, honestly. With approximately 1,850 deals reported so far for 2018, healthcare deal volume is 14% more than 2017. Before we nail the numbers down, it’s easy to spot the biggest deals (by disclosed price) in each of the 13 healthcare sectors we follow. Most should be familiar names, but you can’t follow every sector. That’s why we’re here. Enjoy. Read More »Schedule a demo
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