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Stat of the Week: Healthcare M&A Spending up 18% in 2017
The year hasn’t ended, and there are still two weeks to go in the fourth quarter of 2017. The holidays are already under way, with more on the horizon. Before we get too busy, here’s a quick look at where things stand in mid-December. Total healthcare mergers and acquisitions reached 1,467 deals as of December 14. That’s only 7% lower than the combined total for all of 2016, at 1,574 deals. Spending on these transactions is already higher. This year’s dollar volume currently stands at approximately $303.9 billion, up 18% compared with last year’s total of $256.7 billion. Much of the credit for the spending rise goes to the largest single transaction announced... Read More »
Stryker Buys Entellus Medical
Deals for medical device companies in 2017 are keeping pace with the previous year’s deal volume, more or less. With two weeks left in the year, 107 transactions in the Medical Device category have been announced and about $48.0 billion in spending. Deal volume is 5% lower than the 113 transactions announced for all of 2016 in this sector. The dollar volume is 22% lower than last year’s $61.8 billion. The latest deals announced in December include Stryker Corp.’s (NYSE: SYK) $709.6 million acquisition of Entellus Medical (NASDAQ: ENTL), a global medical technology company focused on delivering superior patient and physician experiences through products designed for the... Read More »
Hospital Mergers Point to the Future of Health Systems
Hard on the heels of the merger announcement between Dignity Health and Catholic Health Initiatives came the news that Ascension Health and Providence St. Joseph Health were in their own talks to merge. The Dignity/CHI deal will create a 139-hospital system spanning 28 states, with revenue of more than $28 billion. If the Ascension/Providence merger is realized, the resulting company would be the largest hospital system, with 191 hospitals in 27 states, and annual revenue of $44.8 billion. By contrast, the current largest system, for-profit HCA (NYSE: HCA), has approximately 175 hospitals and revenue of $42.7 billion. Even if the Ascension/Providence deal doesn’t go through, the... Read More »Health Care M&A Weekly Deals, The Week Ending December 15, 2017
We hope you are enjoying your membership to HealthCareMandA.com. This Health Care M&A Weekly chart below is a selection of transactions announced during the prior week(s). The deals presented here are further elaborated in the monthly newsletter, Health Care M&A News, and in the quarterly report. This information also appears in our online database, Deal Search Online. Visit www.dealsearchonline.com to open a guest account and begin your search. Behavioral Health Care Acquirer Target Price Biotechnology Acquirer Target Price Allergan plc Repros Therapeutics Inc. $26.5 million Ono Pharmaceutical Co., Ltd.... Read More »
DaVita Dumps Its Doc Group for $4.9 Billion
Kidney care specialist DaVita (NYSE: DVA) made good on its statement that it was exploring strategic alternatives for its DaVita Medical Group (DMG). It found a buyer in UnitedHealth Group’s (NYSE: UNH) Optum, which agreed to pay $4.9 billion for DMG, the highest publicly announced price it has paid for a physician group. In January, Optum announced its take-out of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) for $3.2 billion. The company partners with health plans, medical groups and health systems to develop and optimize surgical centers. At the time of the announcement, it operated 205 surgical facilities, including ambulatory surgery centers and surgical hospitals, in partnership with... Read More »
Dignity Health and CHI Make It Official
Dignity Health and Catholic Health Initiatives, two major not-for-profit health systems, signed a letter of intent to explore a merger in October 2016, and finally tied the knot in December. Although Catholic Health is the larger of the two, with 101 hospitals, its financial picture isn’t a rosy as its partner’s. Dignity Health, based in San Francisco, is a 22-state network of more than 9,000 physicians and other advanced practice clinicans and 63,000 employees. It operates 39 acute-care hospitals and 250 ancillary care sites such as urgent and occupational care, imaging centers, home health and primary care clinics. In fiscal 2017, which ended on June 30, it reported revenue... Read More »Deal of the Week: CVS/Aetna
The biggest deal of the year (so far) was announced on Sunday, December 3, no doubt timed to give media outlets a fresh story to begin the week. By now you know that CVS Health Corp. (NYSE: CVS) and managed care giant Aetna (NYSE: AET) plan to merge in mid-2018, to the tune of $77 billion (including Aetna’s debt). The deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and stock: $145 in cash and $62 in stock. Besides being the largest deal announced in 2017 (since 2015, in fact), the unusual combination portends major changes in the U.S. healthcare market. Or not. Skeptics abound regarding... Read More »
Stat of the Week: November Deal Volume -30%
Perhaps it was the anticipation of the Thanksgiving holiday, or the holiday itself, that caused the sudden slump in deal volume. Too much turkey, too little focus on finishing up those transactions? Or we could blame the Republicans’ mad dash to pass their tax “reform” legislation before the end of the year. Both houses of Congress have passed separate versions of the bill, and are presently reconciling those into one, for a final vote. How that will look at the other end of the sausage machine is anyone’s guess, but once the bill is passed, we may see the floodgates open on pent-up demand in the more global sectors, such as Medical Devices and Pharmaceuticals. This is preliminary data, of... Read More »
CVS, Aetna Lead a Potential Big-Deal Parade
The fourth quarter, and the month of December in particular, are usually busy times for mergers and acquisitions, and often when big deals are announced. With one month to go in Q4:17, the pace may be picking up. Deal volume through December 1 stood at 231 transactions (-39% to last year’s 379), and $19.6 billion (-49% vs. $38.6 billion in Q4:16). But late on December 3, CVS Health (NYSE: CVS) and managed care giant Aetna (NYSE: AET) announced their $69 billion merger. More mega-deals are in the offing. Possibly. The CVS/Aetna deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and... Read More »Schedule a demo
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