Banner Health Goes On an Acquisition Spree
Banner Health, the Phoenix, Arizona-based not-for-profit health system, is bucking a trend. Thanks to the impact of the COVID-19 epidemic in the United States, some healthcare analysts expect 2020 will be a “throw-away year” for earnings and M&A activity. Not so for Banner Health, which owns and operates 28 acute-care hospitals in six states, as well as Banner Health Network, Banner University Medicine, academic and employed physician groups, long-term care centers, outpatient surgery centers and an array of other services. It reported revenue of $2.37 billion in the first quarter of 2020, up from $2.33 billion in the same period in 2019. In August 2019, the system acquired... Read More »
Medicrea Acquired by Medtronic to Boost Spinal Surgery Portfolio
Medtronic plc (NYSE: MDT) has had a busy 2020, but the global device manufacturer doesn’t seem to be slowing down. On June 15, the company announced it acquired Medicrea (OTCMKTS: MRNTF) for $158.7 million, or $8 a share. This acquisition will strengthen Medtronic’s position as a global innovator in enabling technologies and solutions for spine surgery. Medicrea leads the design, integrated manufacture, and distribution of more than 30 510(k) cleared implant technologies, utilized in over 175,000 spinal surgeries to date. It has 175 employees worldwide, including 35 employees in New York City. The company also has a modern manufacturing facility in Lyon, France, housing the... Read More »
CloudMD Announces Second Deal in July
CloudMD Software & Services Inc. (OTCMKTS: DOCRF), a Canada-based digital health company, has announced two new acquisitions in July. Formerly known as Premier Health Group, Inc., CloudMD has had a pretty successful 2020 so far. It reported record revenues in Q1:20 of $3.1 million, reached over 100,000 subscribers on its telemedicine platform, and now has two new companies to boost its product portfolio and customer base. On July 16, CloudMD announced it purchased Snapclarity Inc., which manages an on-demand digital platform that provides an assessment for an individual’s personal risk of mental health disorders resulting in a personalized care plan, access to online resources, a... Read More »
Molina Healthcare is Expanding Fast With New Acquisitions
Molina Healthcare, Inc. (NYSE: MOH) has been on an M&A marathon for the past year, expanding into multiple new states and increasing its presence in others. On July 17, the company acquired certain assets related to the Medicaid and Dual Eligible Special Needs Plans (DSNP) lines of business from Passport Health Plan in Kentucky. The deal was valued at $20 million in cash, plus contingent consideration that is payable in 2021 based on Molina’s Kentucky Health Plan’s open enrollment results in 2020. The acquisition of the Passport lines of business allows Molina to enhance operational readiness and promote continuity of care for members in advance of Molina’s... Read More » Health Catalyst Invests In healthfinch
To kick off the third quarter, Health Catalyst has announced its second acquisition of 2020. On July 9, the company announced it acquired healthfinch, Inc. for roughly $40 million. healthfinch provides a workflow integration engine delivering insights and analytics into EMR workflows to automate physicians’ ability to close patient care gaps in real-time. The digital health company is most known for its platform “Charlie,” which handles routine, repeatable, and non-reimbursable “busywork” that tend to burden physicians. The company’s technology is used by more than 5,000 providers and has served 1.7 million patients The acquisition of healthfinch gives a... Read More »
Second Quarter Healthcare M&A Activity Drops
The decline in second quarter healthcare M&A probably won’t surprise many of our readers. The second quarter was the first full quarter of healthcare M&A in the shadow of the COVID-19 pandemic, and deal making took a hit as a result, as shown in results from our DSO database. Compared with Q1:20, Q2:20 dropped 20%, with 322 transactions on the books. Compared with Q2:19 (486 transactions), deal volume in Q2:20 declined even further at 34%. Source: Health Care M&A, July 2020 Long-Term Care and Physician Medical Groups were among the hardest hit sectors, declining 40% and 50% in activity compared with Q1:20, respectively. Year-over-year, the difference is starker. Long-Term... Read More »
Sanofi Inks New Licensing Deal
Just weeks following its agreement with Translate Bio (NASDAQ: TBIO) for COVID-19 vaccine development, Sanofi (NYSE: SNY) has a new agreement with Kymera Therapeutics Inc. Sanofi and Kymera are signing a multi-program collaboration to develop and commercialize first-in-class protein degrader therapies targeting IRAK4 in patients with immune-inflammatory diseases. IRAK4 is believed to play a key role in multiple immune-inflammatory diseases, including hidradenitis suppurativa, atopic dermatitis, and rheumatoid arthritis. Kymera will receive $150 million in cash upfront and may receive more than $2 billion in potential development, regulatory and sales milestones, as well as significant... Read More »
Summit BHC Expands Into West Virginia
Private equity-backed Summit BHC has announced a new acquisition in West Virginia. The behavioral health treatment company added Highland Hospital to its network for an undisclosed sum. Meridian Behavioral Health Systems, LLC is selling Highland Hospital, an inpatient psychiatric facility (131 beds) with 24 beds dedicated to psychiatric residential treatment and 91 beds for inpatient acute psychiatric needs. The stalking horse bid was at a price of $10 million. Highland Hospital generated $3.29 million EBITDA and revenues of $27.million for 2018. Meridian acquired Highland Hospital in August 2017. The sale came from a bankruptcy auction. This deal is Summit BHC’s second in 2020,... Read More » Health Care M&A Deals, July 10, 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 Deal Search Online 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 based on announced prices was Primovie’s acquisition of eight senior care facilities for $164.4 million. To subscribe to our Health Care M&A deals chart and more, visit our membership site. HealthCareMandA.com is devoted to healthcare merger and acquisition data for the serious analyst and investor. Every day, this service alerts you to... Read More »