Welcome!

@CloudExpo Authors: Pat Romanski, Liz McMillan, Yeshim Deniz, Elizabeth White, Zakia Bouachraoui

News Feed Item

Berkery Noyes Releases Healthcare/Pharma Information And Technology Industry M&A Report For Full Year 2012

NEW YORK, Jan. 11, 2013 /PRNewswire/ -- Berkery Noyes, an independent mid-market investment bank, today released its full year 2012 mergers and acquisitions trend report for the Healthcare/Pharma Information and Technology Industry.

The report analyzes merger and acquisition activity for the industry during 2012 and compares it with data covering 2010 and 2011. This market includes information and technology companies servicing the pharmaceutical, healthcare payer, and healthcare provider spaces.

Total transaction volume increased 21 percent on a yearly basis. At the same time, aggregate transaction value rose five percent, from $11.36 billion in 2011 to $11.96 billion in 2012. The median revenue multiple improved from 1.5x to 2.3x, while the median EBITDA multiple increased from 9.0x to 9.8x. Private equity firms were responsible for four of the industry's top ten highest value deals during 2012. The most active financial sponsor in the report over the past year was TPG Capital with five transactions.

The Healthcare IT segment, which saw an 11 percent increase in deal flow in 2012, accounted for 41 percent of the industry's aggregate transaction volume. The segment had a median revenue multiple of 1.8x and a median EBITDA multiple of 9.6x.

According to Tom O'Connor, Managing Director at Berkery Noyes, "The overall deal flow showed in general more transactions but smaller enterprise value deals getting done. The current market, due to large macro/regulatory changes in healthcare and a massive shift to electronic solutions, presents a very favorable climate for sellers with unique offerings, scale, recurring revenue models (SaaS) and rapid growth in attractive niches that are looking to capitalize on the high level of interest in healthcare information and technology solutions." 

O'Connor continued, "The robust level of M&A activity shows that there are plenty of desirable, fast growing companies – many privately owned and SaaS enabled solutions – that are attracting very high multiples and appealing to both strategic and financial acquirers. In addition, the expiring favorable tax treatment on capital gains helped push some sellers to complete transactions this year.  We expect to see a lot of smaller, SaaS enabled solutions in attractive niches and rapidly growing companies come to market in 2013 and attract robust prices."

Meanwhile, transaction volume in the industry's revenue cycle management subsector increased 37 percent from 2011 to 2012. One of the largest related transactions in 2012 was Sutherland Global Services' announced acquisition of Apollo Health Street for $184 million.

"Healthcare IT vendors that enable health insurers to improve clinical outcomes while reducing expenditures are increasingly becoming attractive acquisition candidates," said Jonathan Krieger, Managing Director at Berkery Noyes. "In addition, with the ongoing implementation of the Affordable Care Act, there is more of an emphasis on value based reimbursement models," stated Krieger. "The medical loss ratio (MLR) mandates imposed on health insurers continue to act as a catalyst to outsource non-core competencies as well."

M&A activity in the Medical Education segment rose 78 percent on a year-to-year basis, making it the segment with the largest volume increase. Regarding transaction volume in some of the industry's other market segments, there was a 27 percent rise in Healthcare Business Services and a 35 percent improvement in Consumer Health Information between 2011 and 2012.

Furthermore, there was a 50 percent increase throughout the past twelve months in the industry's mobile application subsector. "Mobile solutions have the potential to play an increasingly important role," said Jeffrey Smith, Managing Director at Berkery Noyes. "In the pharma sector for instance, mobile applications can streamline data collection, facilitate communication during the clinical trial process, and help lab researchers in their recruiting efforts to find prospective subjects. Tech oriented companies with one or more of these capabilities are likely to continue drawing interest from potential acquirers."

A copy of the HEALTHCARE/PHARMA INFORMATION AND TECHNOLOGY INDUSTRY M&A REPORT FOR FULL YEAR 2012 is available at the Berkery Noyes website.

Berkery Noyes specializes in mergers and acquisitions advisory, debt and equity financing, and financial consulting services for companies in the $10 million to $500 million range, a market that is enjoying a surge in activity. The firm's research teams publish acquisition activity in the respective sectors they follow on MandAsoft.com.

­Contact Information:
Peter Wilson
Berkery Noyes
646-442-7966
[email protected]

SOURCE Berkery Noyes

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

CloudEXPO Stories
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or personal computing needs.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sponsorship and exhibit opportunities.
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 Cloud Computing Blogger for IT Integrators" by CRN (2015). Mr. Jackson's professional career includes service in the US Navy Space Systems Command, Vice President J.P. Morgan Chase, Worldwide Sales Executive for IBM and NJVC Vice President, Cloud Services. He is currently part of a team responsible for onboarding mission applications to the US Intelligence Community cloud computing environment (IC ...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the steps so your team's apps not only function but also can be monitored and understood from their machine data when running in production.