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Pacific Biosciences Gives Illumina a Long-Read View
Only one week into November and deal value stands at $2.5 billion. Not a bad start, given that October’s full deal value totals $9.4 billion. At least 60% of November’s spending comes from one deal, Illumina’s (NASDAQ: ILMN) acquisition of Pacific Biosciences (NASDAQ: PACB) for $1.2 billion. The all-cash price consists of $8.00 per share for Pacific Biosciences (13.4x revenue), which Illumina’s press release notes is a 71% premium to PACB’s 30 trading day volume weighted average share price as of the market close on October 31, 2018. PACB closed at $4.45 that day, but has soared to around $7.75 as of November 9. For Illumina, the acquisition complements its... Read More »
ResMed Pays Big for MatrixCare
It’s a frothy, frothy market in most areas of health care, and the digital health space just got frothier. ResMed Inc. (NYSE: RMD), which makes medical equipment to monitor respiratory disorders, announced it paid $750 million for MatrixCare, a portfolio company of OMERS Private Equity. Right up front, ResMed touted the 25x price/EBITDA multiple, based on MatrixCare’s pro forma net EBITDA of approximately $30 million for calendar year 2018. Pro forma net revenue of $122 million in the same period is approximately 6.2x. The valuation is higher than even the sector’s biggest deal this year, Verscend Technologies’ $4.9 billion take-private deal for Cotiviti Holdings... Read More »
October 2018 Healthcare Deal Spending Breaks Even
Spending on healthcare deals in the month of October didn’t match the surge in deal volume (see separate post). At $9.4 billion, October 2018 posted a slight 4% gain over September, but was 25% lower than the $12.6 billion spent in October 2017. Of course, we can only go by disclosed prices, and several transactions that did not disclose financial terms would probably boost the month’s total by at least a few billion dollars. H.I.G. Capital’s acquisition of Correct Care Solutions, is a case in point. Co-owners Audax, GTCR and Frazier Healthcare sold Correct Care, which provides medical and behavioral health services for nearly 250,000 patients in 38 U.S. states and in Australia. Only... Read More »
Fourth Quarter 2018 Blasts Off with Heavy Deal Volume
Healthcare transactions kicked into high gear in October, with preliminary data showing a monthly total of 176 deals, the highest monthly tally reported this year. It bests September’s 144 deals by 22%, and the year-ago volume of 151 deals by 17%. Eight of the 13 sectors saw solid gains compared with October 2017 results. The Long-Term Care sector saw a boost to 30 deals, up 15% compared with the previous month, and 25% year over year. Behavioral Health Care, Physician Medical Groups and Other Services were strong performers among the services sectors, and the usually quiet Laboratories, MRI & Dialysis sector showed a surge (relatively speaking) of 80% compared with the previous month... Read More »
Health Care M&A Deals, Week Ending November 2, 2018
The Health Care M&A Weekly chart is a selection of transactions announced during the prior week(s). The deals presented here are from our Deal Search Online database, which is updated every business day, in the quarterly report. Visit www.dealsearchonline.com to see how Deal Search Online can help you stay up-to-date on the healthcare market overall, or in a particular sector of interest to your firm. Biotechnology Acquirer Target Price ProQR Therapeutics N.V License to QR-1123 $2,500,000 Ophthotech Corporation Inception 4, Inc $11,752,000 Gilead Sciences, Inc. Collaboration on immuno-oncology therapies $50,000,000 Sanofi Collaboration on RIPK1 inhibitor molecules $125,000,000 eHealth... Read More »
Q3:2018 Health Care Deal Dollar Volume
A total of $30.4 billion was spent to fund the 435 transactions reported in Q3:18, based on disclosed prices. The Hospital sector dominated the dollar side of deal making for the first time since 2013, accounting for 27% ($8.2 billion) of spending. A single deal accounted for 68% of the Hospital sector’s total, as RCCH HealthCare Partners, a portfolio company of Apollo Global Management, took LifePoint Health (NASDAQ: LPNT) private in a $5.6 billion deal. As the largest deal announced during the quarter, it accounted for just 18% of the $30.4 billion total. The Other Services sector made up 16% ($4.8 billion) of spending in the third quarter. Two deals helped to put this sector on the... Read More »
Senior Housing and Care Market Still Strong in Q3:18
Merger and acquisition activity in the Long-Term Care sector, which includes senior housing and care companies, took off in the second and third quarters of 2018. The 110 deals announced in the second quarter set a record for a quarter, and the third quarter followed with a near repeat performance. The third quarter’s deal volume was down 6% compared with the previous quarter but 34% higher than the same quarter in 2017. The 103 deals made up 28% of the 368 deals announced within the past 12 months. Fifty-five of the 103 deals revealed prices, although none were greater than $194 million. The $1.7 billion total in Q3:18 is 73% lower than the previous quarter’s nearly $6.5 billion, and 35%... Read More »
Hospital Transactions Held Steady in Q3:2018
Mergers and acquisitions in the Hospital sector held steady from the second to the third quarter, with 15 definitive agreements announced in each. Deal volume dropped 12% compared with the same quarter in 2017. The 15 deals announced in the second quarter made up 19% of the 80 deals announced in the previous 12 months. One factor behind the decline from the first quarter was the end of the announced divestitures made by some for-profit chains, particularly Community Health Systems (NYSE: CYH) and its spin-off, Quorum Health (NYSE: QHC). Together with Tenet Healthcare (NYSE: THC), these three companies spent the previous six quarters selling off underperforming assets in non-core markets.... Read More »
Quest Diagnostics Bought and Sold Labs in October
The Labs, MRI & Dialysis sector saw a surge of deal making in October. The sector is a conglomeration of various healthcare segments, obviously, but clinical laboratories drove the nine announced transactions. Quest Diagnostics Inc. (NYSE: DGX) announced three of those deals, first with its divestiture of its India-based medical diagnostics business, consisting of 24 diagnostic labs across the sub-continent, including a large specialized diagnostics practice with three reference labs with expertise in oncology, genomics and precision medicine. The buyer was Strand Life Sciences, a portfolio company of Quadria Capital, a clinical research and diagnostics company that combines... Read More »Schedule a demo
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