Laboratories, MRI & Dialysis Deals Dropped in 2016
Deal volume settled down in 2016, following a very busy 2015 in the Laboratories, MRI & Dialysis sector. The 41 deals recorded represent a 21% decline compared with the 52 announced in 2015. Laboratories have had to adapt as hospitals and health systems have merged or closed in recent years. Some labs have evolved to offer coordinated diagnostics: offering tests that give on-the-spot diagnoses, handling bills and lab data from several sources and providers as an aid to accountable care organizations, and focusing on the patient experience to ensure repeat business. At the same time, deal value surged in 2016, up 166% year-over-year to $11.6 billion. Two multi-billion-dollar deals... Read More »
Strategic vs. Financial Healthcare Buyers in 2016
Every spring, we publish myraid statistics on the healthcare services deals announced the year before, in the form of The Health Care Services Acquisition Report. This year’s 23rd edition, which will available in late March, has this examination of what financial buyers targeted in 2016. Strategic buyers continued to dominate the health care services M&A market in 2016, as they have in the past. Their 683 deals made up 73% of the year’s deal volume. The $45.7 billion spent accounted for 63% of the combined total of $72 billion. A total of 259 deals, or 27% of the services deal volume in 2016, were carried out by financial buyers, such as private equity firms and real estate... Read More »
Varian Spins Off Varex Imaging Systems
A medical imaging company is born. Or, rather, another medical imaging company goes public. Varian Medical Systems Inc. (NYSE: VAR) paid $276 million for the medical imaging business of PerkinElmer (NYSE: PKI) back in December 2016. That business, based in Santa Clara, California, supplies flat panel x-ray detectors that serve as components for industrial, medical and dental x-ray imaging systems. That deal was part of Varian’s plan to spin off its Imaging Components business. That feat was accomplished in January 2017, with the launch of Varex Imaging Corporation (NASDAQ: VREX), with a market cap of $1.09 billion. Under the terms of the separation, Varian stockholders received 0.4... Read More »December 2016 Didn’t Deliver a Year-End Boost
The final month of the fourth quarter is typically a busy one for deal makers in all industries. Last year, some health care deal makers apparently got a rest. Deal volume in December 2016 was an anemic 119 transactions, compared with 131 deals in November and 148 in December 2015. The Services sectors accounted for 55% of the deals in December, which is on the low side. Consider that, in November, Services accounted for 69% of the month’s transactions, and even 70% of the total in December 2015. Spending on those deals reached $15.4 billion, a relatively modest amount until it is compared with November’s $8.7 billion total (+78%) and December 2015’s $12.3 billion total (+26%). Suddenly,... Read More »2016 Delivered on Health Care M and A
As health care mergers and acquisitions go, 2016 lived up to the predictions that M&A activity would stay strong. Preliminary data for year-end totals shows 1,536 announced transactions across 13 healthcare sectors. The total represents a 1% increase in deal volume compared with 2015. (See chart below.) Spending on those deals was significantly lower than the previous year, at least for now. The combined total spending in 2016 now stands at $255.7 billion, down 36% compared with 2015’s $400.3 billion. Nearly $100 billion of that total now hangs in the balance, as two of 2015’s largest deals (Anthem/Cigna and Aetna/Humana) await decisions from a federal judge regarding... Read More »Schedule a demo
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