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Health Care M&A Deals, January 8, 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 Optum’s (NYSE: UNH) acquisition of Change Healthcare (NASDAQ: CHNG) for $13.17 billion, or $8 billion in cash ($25.75 per share) and approximately $5.17 billion in assumed debt. The price is a 41% premium to Change Healthcare’s close on January 5, 2021. Change Healthcare is a leading independent healthcare technology company and... Read More »
Healthcare M&A In 2020 Goes Out In Style
Now that we made it to 2021, the last thing our readers might want to do is look back at 2020. We totally get it, it was a very long year, but activity in the fourth quarter surprised all of us, and it’s worth sticking around as we break down the numbers in the healthcare M&A market. Activity in October and November maintained the status quo for 2020, with dealmaking seemingly stifled by rising Covid-19 cases across the country. There were 130 deals announced in October, with a slight uptick in November, when 142 transactions were announced. For context, the average monthly deal volume for 2020 was 135. However, December healthcare M&A activity felt like an avalanche, with 222... Read More »
Optum Acquires Change Healthcare
It’s not often we see a prolific buyer such as Change Healthcare (NASDAQ: CHNG) as the target company in an acquisition, but it’s a new year with new possibilities. The digital health and analytics giant will be acquired by Optum, a member of UnitedHealth Group (NYSE: UNH) that operates OptumHealth, a population health management company; OptumInsight, a healthcare information analytics company; and OptumRx, a pharmacy benefits management company. The deal is valued at $13.17 billion, consisting of $8 billion in cash ($25.75 per share) and approximately $5.17 billion in assumed debt. The price is a 41% premium to Change Healthcare’s closing price on January 5, 2021. Change Healthcare is a... Read More »
Walgreens Sells Alliance Healthcare
In an effort to focus on its growing retail pharmacy division, a network of more than 9,000 stores, Walgreens Boots Alliance, Inc. (NASDAQ: WBA) is selling its Alliance Healthcare business to AmerisourceBergen Corporation (NYSE: ABC). The deal, valued at $6.5 billion, is comprised of $6.275 billion in cash and 2 million shares of AmerisourceBergen common stock for a majority interest. The Alliance Healthcare business supplies medicines, other healthcare products and related services to more than 115,000 pharmacies, doctors, health centers and hospitals each year from 306 distribution centers in 11 countries. AmerisourceBergen sources and distributes pharmaceutical products to healthcare... Read More »
Medical Properties Trust Buys Behavioral Health Portfolio
After Acadia Healthcare Company, Inc. (NASDAQ: ACHC) divested Priory Group, its U.K. behavioral health care business, for $1.47 billion, Priory Group is doing some unloading of its own. Now backed by Waterland Private Equity, Priory Group is selling a portfolio of approximately 40 select behavioral health facilities located in the United Kingdom to Medical Properties Trust, Inc. (NYSE: MPW). The Birmingham, Alabama-based REIT will pay approximately GBP 800 million, or $1.087 billion, plus customary stamp duty tax and other transaction costs. The properties will be subject to long-term sale-leaseback agreements with Priory, which are expected to provide MPT a GAAP-basis yield of 8.6% and... Read More »
HealthEdge Buys Altruista Health
HealthEdge, a portfolio company of The Blackstone Group (NYSE: BX), announced the acquisition of Altruista Health, Inc. for an undisclosed sum. Altruista Health delivers care management and population health management solutions that support value-based care models. Altruista serves approximately 30 customers representing over 16 million members and has developed deep expertise serving complex patient populations across Managed Medicaid and Medicare Advantage plans. Its GuidingCare technology platform integrates care management, care coordination and quality improvement programs through a suite of web applications. HealthEdge provides healthcare IT solutions that health insurers use to... Read More »
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 $2.47 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 »Schedule a demo
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