Acadia Healthcare Exits the U.K.
After a brief suspension in the sale process, Acadia Healthcare Company, Inc. (NASDAQ: ACHC) has finally found a buyer for its U.K. behavioral health care operations, known as Priory Group. Acadia first began exploring a divestment of Priory Group in early 2020, but talks were suspended when the Covid-19 pandemic hit. In September, Acadia released a statement that said it was resuming the sale process, and the company finally managed to close the deal on December 30. The buyer is Waterland Private Equity, an independent private equity investment group based in The Netherlands. The firm is paying approximately GBP 1.78 billion, or US $1.47 billion, based on the current exchange rate, for... Read More »
A Busy Month for Physician Medical Group Deals
December M&A activity hit over 200 deals, and we were struggling to remember a time when numbers hit that high, let alone in a historic pandemic (and more deals are expected to float to the surface in the next few weeks). Part of that surge in deal volume can be attributed to M&A in the Physician Medical Group sector, which hit 28 deals so far, based on search results in our Healthcare Deals Database. All but seven deals were committed by a private equity firm or its portfolio company, showing private equity’s continued influence on the Physician Medical Group market. No one particular company dominated as a buyer, but a few different firms reported multiple deals. Advanced... Read More »
Centene Corporation and Magellan Health Merge
It looks like the healthcare M&A market is off to a strong start for the new year. Centene Corporation (NYSE: CNC), the multi-national managed care giant, has announced the acquisition of Magellan Health, Inc. (NASDAQ: MGLN), a healthcare management company specializing in behavioral health and pharmacy benefits. The deal is valued at $2.2 billion, or $95 per share, a 14.6% premium to Magellan’s closing price of $82.85 on December 31, 2020. Magellan Health has approximately 23.5 million members enrolled under its programs. Once the news broke, Magellan’s shares jumped 11% while Centene’s stock reported a slight uptick. Magellan generated annualized EBITDA of... Read More »
Health Care M&A Deals, January 1, 2021
The Health Care M&A deals chart is a selection of transactions announced during the prior week(s). The M&A transactions presented here are from our HealthCareMandA.com Deal Database, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. The largest deal of the week is Waterland Private Equity’s acquisition of Priory Group, the U.K. behavioral healthcare operations of Acadia Healthcare Company, Inc., for $1.47 billion. The Priory Group has 361 behavioral health facilities with 8,700 beds across the U.K. Acadia Healthcare purchased Priory Group in January 2016 for $2.25 billion. In order to... Read More »
Saying Goodbye To 2020
Note: This post was featured in our sibling publication focused on the Long-Term Care sector, The SeniorCare Investor. It’s time to put 2020 to rest, and in 2021 we will all do our best. If you happen to be listening to this on Christmas Eve Hopefully you will remember it came from Steve As you know, 2020 was a terrible year And in our industry, it brought little cheer What with shortages of tests and PPE Let’s not forget those of us who ran out of TP COVID was nasty, don’t we all know And it cost the providers a lot of dough Blame was cast by the media for sure But your resilience means we will all endure There’s no time to waste, the message still needs to get out That you are a... Read More » Health Care M&A Deals, December 25, 2020
The Health Care M&A deals chart is a selection of transactions announced during the prior week(s). The M&A transactions presented here are from our HealthCareMandA.com Deal Database, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. The largest deal of the week is Gainwell Technologies’s acquisition of HMS for $3.4 billion. HMS provides a broad range of payment accuracy and population health management solutions, as well as analytics and engagement solutions. Gainwell Technologies, a portfolio company of Veritas Capital, is the former U.S. State and Local Health and Human Services business of DXC... Read More »
Gainwell Technologies Acquires HMS
Gainwell Technologies, a portfolio company of Veritas Capital, has announced it acquired HMS (NASDAQ: HMSY). HMS provides a broad range of payment accuracy and population health management solutions, as well as analytics and engagement solutions. Under the terms of the agreement, Gainwell will buy HMS for $3.4 billion, or $37 per share in cash, a 52% premium to HMS’ unaffected share price as of October 2, 2020, the last trading day prior to when reports of a possible transaction were published. The purchase price comes out to 5.13x HMS’ 2020 annualized revenue and 22.60x HMS’ annualized EBITDA. Gainwell Technologies supports clients across the United States and territories with offerings... Read More »
EyeSouth Partners Adds Another Texas Physician Group
The private equity-backed EyeSouth Partners is closing 2020 on a strong note. With the support of Shore Capital Partners, EyeSouth Partners added Eye Center of Texas (ECT), which employs 14 physicians across six primary clinical locations in the greater Houston area and provides an integrated service model incorporating the latest advancements in cataract surgery, retina management, glaucoma treatment, refractive surgery and routine eye exams. EyeSouth Partners is an eye care services organization in the southeast. Its affiliate network consists of 114 doctors providing medical and surgical eye care services at approximately 70 locations, including 11 surgery centers, in Alabama, Florida,... Read More »
Servier Builds Oncology Portfolio With New Deal
The France-based pharmaceutical company Servier is back with a new deal, adding Agios Pharmaceuticals, Inc.‘s (NASDAQ: AGIO) oncology portfolio for $1.8 billion upfront in cash. The portfolio consists of Agios’ commercial, clinical and research-stage oncology product line, which includes Tibsovo, a treatment for adults with IDH1-mutant relapsed or refractory acute myeloid leukemia, and additional oncology pipeline and clinical programs. The deal also includes Agios’ co-commercialization responsibilities for Bristol Myers Squibb’s (NYSE: BMY) IDHIFA and certain clinical development activities within the IDHIFA development program. In addition to the upfront payment, Servier will pay Agios... Read More »