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It’s a Glass Half-Something View of Healthcare M&A
If you only saw one story regarding Capital One Healthcare’s (NYSE: COF) recent industry survey, then you only saw one view of where the respondents think the industry is heading. Every year, Capital One surveys a group of healthcare services executives and private equity firms on their opinions regarding the industry’s business performance, likely merger and acquisition activity, emerging growth segments, etc. Last September, 123 CEOs, CFOs and other senior executives and PE investors responded, and the results were published as an infographic. “Healthcare Industry Optimism Reaches New Heights” was the title, followed by a graphic showing that 72% of respondents... Read More »
ZT Corporate Scoops up Six Freestanding Emergency Centers
ZT Corporate, a Houston-based private equity firm formerly known as ZT Wealth, won its stalking-horse bid to acquire six freestanding emergency centers in the Houston area, operating under the Neighbors Emergency Center brand. Founded in 1997, the firm owns and manages Altus Health, whose operations include a surgical hospital, cancer centers and three freestanding emergency centers, all in Texas. Neighbors was founded in Pearland, Texas in 2008 and opened its first center in 2009. At its peak, the company operated 33 centers across three states. However, increased competition, too much corporate overhead and “less favorable insurance payor conditions” led to financial... Read More »
Health Care M&A Deals, Week Ending November 9, 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. Behavioral Health Care Acquirer Target Price BayMark Health Services SpecialCare Hospital Management N/A FHE Health Group Treatment Partners of America N/A Biotechnology Acquirer Target Price Eli Lilly and Company License to immuno-oncology therapies $25,000,000... Read More »
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 »Schedule a demo
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