Deal Volume Rose in July

by | Aug 10, 2015 8:52 am | Behavioral Health Care, Biotechnology, eHealth, Home Health & Hospice, Hospitals, Laboratories, MRI & Dialysis, Long-Term Care, Managed Care, Medical Devices, Other Services, Pharmaceuticals, Physician Medical Groups, Rehabilitation

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 »

Health Care M&A Exploded in July

by | Aug 3, 2015 8:39 am | Managed Care, Pharmaceuticals

The fireworks didn’t end on the Fourth of July, at least for the health care M&A market. Preliminary data shows deal volume rose 16% to 121 deals, compared with June’s 104 deals. Thanks to the mega-deals among health insurers and generic drug makers, deal value was approximately $166.6 billion, up 883% over June’s $16.9 billion. A full report will be published in the August issue of Health Care M&A News. Top 5 Health Care M&A Deals in July 2015 AcquirerTargetPrice Anthem, Inc. Cigna Corporation$54.2 billion Teva PharmaceuticalsAllergan Generics$40.5 billion AetnaHumana Inc. $37.0 billion Celgene CorporationReceptos, Inc. $7.2 billion Centene CorporationHealth Net, Inc. $6.8... Read More »

Health Care Insurer Mergers: Who Got the Best Deal?

by | Jul 27, 2015 6:31 pm | Managed Care

You’ve heard the prices, now here are the multiples. After hours of teasing about a definitive agreement, Anthem, Inc. (NYSE: ANTM) finally reached an agreement to acquire Cigna Corp. (NYSE: CI) for $54.2 billion. That works out to 1.5x price/revenue and 13.9x price/EBITDA. The deal followed Aetna’s (NYSE: AET) $37 billion acquisition of Humana Inc. (NYSE: HUM), which gives us a multiple of 0.7x price/revenue and 13.7x price/EBITDA. Cigna is more “administrative services only” versus “full risk” insurance. ASO is lower revenue, but higher margin business than is full risk, which helps explain the P/R difference between the two deals. The much smaller combo... Read More »

Molina Healthcare Steps Up Its Game

by | Jul 20, 2015 3:21 pm | Managed Care

The big buzz in the Managed Care sector is the $37 billion bid from Aetna (NYSE: AET) for Humana Inc. (NYSE: HUM), of course. While that deal is lauded for the Medicare assets it brings to Aetna, Molina Healthcare (NYSE: MOH) continues to beef up on Medicaid assets. Last week it announced two deals, one for the Medicaid assets of MyCare Chicago covering approximately 61,000 enrollees in Cook County, Illinois. The other was for Preferred Medical Plan’s Medicaid assets, serving approximately 25,000 enrollees. These deals come on the heels of its acquisition in May of HealthPlus of Michigan’s MIChild contract, with around 6,000 patients, and the Medicaid contract of HealthPlus Partners,... Read More »

Centene Snares Health Net for $6.8 Billion

by | Jul 6, 2015 2:37 pm | Managed Care

And so it begins. The managed care merry-go-round picked up speed last week as Centene Corporation (NYSE: CNC) announced it would pay approximately $6.8 billion (including $500 million of debt) to acquire a smaller rival, Health Net, Inc. (NYSE: HNT). A day later, Aetna (NYSE: AET) and Humana (NYSE: HUM) agreed to a deal priced at $37 billion, including debt. That leaves Anthem Inc. (NYSE: ANTM) in pursuit of Cigna (NYSE: CI), which had turned down its latest offer of $47.5 billion the week before. All eyes are now on Molina Healthcare (NYSE: MOH) and WellCare Health Plans (NYSE: WCG), waiting to see if they are targets, or merger partners. Or both. Read More »

The Giant Health Insurers Are Circling

by | Jun 22, 2015 8:42 pm | Managed Care

It began in May, with Humana Inc. (NYSE: HUM) publicly declaring it was exploring a sale. That announcement ignited the smoldering rumors that have been swirling around the healthcare industry since the beginning of 2015: Expect a lot of consolidation in the Managed Care sector this year. By mid June The Wall Street Journal reported that UnitedHealth Group (NYSE: UNH) approached Aetna Inc. (NYSE: AET) with an offer, and that Anthem (NYSE: ANTM) and Cigna (NYSE: CI) were engaged in merger talks. We checked our DealSearchOnline database to see how each of the top five spent on managed care targets since 1994. Check ’em out.    Read More »