eHealth Activity Climbs in Q3

The eHealth sector came out swinging this quarter, reporting 51 deals, according to our Deal Search Online database. That’s a modest 9% uptick over Q2:19 deals, but a 38% increase over the same quarter in 2018. Year-to-date totals tell a similar story. In 2018, the first three quarters reported 146 deals, while 2019 clocks in with 151 deals so far. Announced prices have followed suit as well. By the end of the third quarter in 2018, there were roughly $12.8 billion in disclosed prices, but in 2019 we’ve seen approximately $17.9 billion in the sector. Four deals disclosed prices north of a billion dollars in the first three quarters of 2018, including Verscend Technologies,... Read More »
athenahealth Finds a Buyer and a Merger Partner

athenahealth Finds a Buyer and a Merger Partner

Only two weeks into the month of November 2018, and already the deal value is higher than all of October. Through November 14, nearly $9.8 billion has been spent, but that’s largely because of a single deal, and one that’s been long in the works. After a lengthy bidding process, athenahealth (NASDAQ: ATHN) was acquired by Veritas Capital and Evergreen Coast Capital, the private equity subsidiary of activist investor group Elliott Management Corporation. athenahealth’s focus is on hospital and ambulatory customers and its products range from medical records, revenue cycle, patient engagement, care coordination and population health services. The final price of... Read More »
ResMed Pays Big for MatrixCare

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 »
Veritas Capital Doubles Down on Digital Health

Veritas Capital Doubles Down on Digital Health

Veritas Capital Management has made some aggressive moves into the digital health space in recent years. Its investment focus is on companies that provide critical products and services, not just in healthcare, but also in aerospace and defense, communications, energy and education. So its recent activity is interesting, and expensive. In April 2016, Veritas paid $820 million to acquire Verisk Health from its parent, Verisk Analytics, Inc. (NASDAQ: VRSK). Verisk Health provides data services, analytics and advanced technology to support value-based healthcare delivery and payment systems. At the time of the sale, it had 350 clients in the United States. The price consisted of $720 million... Read More »