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U.S. Hospital Deals Holding Steady
Seven months into 2017, hospital mergers and acquisitions in the United States are slow and on the smaller side. Even with Community Health System’s (NYSE: CYH) ongoing divestiture announcements, just 51 transactions have been announced through August 1. In all of 2016, 84 transactions for U.S. hospitals were announced. With five months to go, that’s a target this sector could meet or even surpass, but that’s not a very high bar to reach, considering there were 96 deals for U.S. hospitals announced in 2015. Spending on this year’s hospital deals has been anemic. Through August 1, almost $2.3 billion has been spent on mostly private hospital transactions, with the largest, at $1.4 billion,... Read More »Health Care M&A Weekly Deals, The Week Ending August 11, 2017
Health Care M&A Weekly Deals, The Week Ending August 11,... Read More »Pharmaceutical M&A Shows No Sign of Rebounding
Acquisition data from Q2:17 shows pharmaceutical deal volume continues its steep downward decline. (See chart) Pharmaceutical deal making slid even further in the second quarter, down 45% to 16 deals, compared with the previous quarter, and down 64% compared with the same quarter a year earlier. This quarter’s deal volume accounts for 14% of the 116 deals announced in the previous 12 months. This sector enjoyed an M&A heyday in 2014 (188 deals) and 2015 (171). Pharma deals began to dry up in 2016 (156) and are lagging even that slower pace through the first half of 2017 (50 deals). One major reason for the dearth in deal volume this year is that the Big Pharma companies (like all the... Read More »Fresenius Banks on Dialysis at Home
Fresenius, a global leader in dialysis, brings dialysis into the home with a $2 billion deal. As hospitals and other providers face mounting pressure to deliver high-quality, lower cost services, one company has taken the initiative to become a world-leader in at-home critical care. On August 7, 2017, Fresenius Medical Care (NYSE: FMS) acquired NxStage Medical, Inc. (NASDAQ: NXTM) for $2.0 billion. Fresenius Medical Care will acquire all outstanding shares of NxStage for $30.00 per common share, valuing the deal at approximately $2.0 billion, including $1.24 million of debt. Multiples work out to 5.11x revenue and 7.97x EBITDA. Based in Boston, NxStage Medical develops, manufactures, and... Read More »
CROs Are Buying, Too
A few CROs, like PRA Health Sciences, are turning to eHealth acquisitions to strengthen their data technology capabilities. We already know that CROs are popular targets. But CROs can play the role of acquirer, too. Lately, a few of these companies have been busy claiming eHealth targets to advance their technological capabilities, namely data capabilities. On August 7, 2017, PRA Health Sciences, Inc. (NASDAQ: PRAH) acquired privately-held Symphony Health Solutions Corporation. The deal valued Symphony at $530 million, or 2.65x revenue. But, that value could be even larger depending on Symphony Health exceeding financial targets in 2017 and 2018 Symphony Health Solutions Corporation... Read More »
PE Firms Pay Big for Medical Transportation
KKR & Co., through its portfolio company, is the second private equity firm to pay more than $2 billion for a medical transportation company in 2017. The medical transportation market, falling under the “Other Services” category, has seen a couple of large deals in 2017, as some big name companies decide to change hands. On August 8, 2017, Envision Healthcare Corporation (NYSE: EVHC) announced it was selling its medical transportation subsidiary, American Medical Response (AMR), to Air Medical Group Holdings, Inc. (AMGH), a portfolio company of KKR & Co. (NYSE: KKR). The deal comes more than two years after KKR bought it from Bain Capital and Brockway Moran for an undisclosed... Read More »Health Care M&A Weekly Deals, The Week Ending August 4, 2017
Health Care M&A Weekly Deals, The Week Ending August 4,... Read More »Summer Heat Sinks Deal Making in July
Deal makers took a break in July, judging by the lower deal volume and lower deal value posted in our preliminary data for the month. Compared with the previous month, deal volume dropped 20%, to 100 transactions, and deal value fell 49%, to $8.7 billion. Third quarters are typically slower for mergers and acquisitions, although there have been a few exceptions. In 2015, a record 411 deals were announced in Q3, which was 17% better than the same quarter in 2014, and 10% better than the third quarter in 2016. With little more than one month into Q3:17, we’ve logged 106 transactions. Not exactly a strong pace, but that could change. At this writing, the Senate Republicans failed to get the... Read More »PE Buyers Targeting Dental Groups in 2017
Financial buyers in healthcare services are interested in segments with unyielding demand and little medical risk. No wonder, then, that dental groups have become a major target for these investors, and we’ve got the data to prove it. . Dental group acquisitions remain a solid investment. Since 2014, acquisitions have risen steadily. Through August 1, 2017, 19 dental deals have been announced, a 6% increase compared with 2016’s total of 18 deals. This eight-month total is alread 72% higher than 2015’s total (11), and up 138% from 2014’s total (8). Private equity firms are almost entirely responsible for the ongoing consolidation. In 2017, 53% of buyers were private equity... Read More »Schedule a demo
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