TECHNOLOGY: Three sets of regulations pave way for meaningful use, push encryption
... but value of healthcare transactions climbs
Healthcare firms completed fewer deals in the second quarter of this year compared with the prior quarter, but the overall value of the transactions surged on the heels of a number of blockbuster tie-ups.
In total, the healthcare industry completed 321 deals in the second quarter, a 20% decrease compared with the 401 deals recorded in the first three months of the year. But acquirers put more money on the table, with the value of disclosed deals jumping 214.7% to reach $50.6 billion compared with $16.1 billion in the first quarter, according to Healthcare M&A Watch, Modern Healthcare’s new quarterly report on healthcare merger and acquisition activity.
However, small bolt-on deals were still the most prevalent, with 67.3% of secondquarter transactions clocking in below the $50 million mark.
Within the healthcare industry, vendors once again represented the most active dealmaking sector, with vendor acquisitions accounting for 62.6% of all deals in the second quarter, compared with 52.7% during the second quarter of 2011.
However, the 201 vendor deals made up only $14.2 billion of the disclosed value of all second-quarter transactions.
Private-equity and venture-capital firms were the acquirers in nearly three-quarters of deals involving vendors, and 13 out of the 15 largest deals in the sector involved a financial bidder.
Investors on the whole, however, completed 26.4% fewer deals in healthcare than they did the previous quarter. Still, they followed the trend of strategic buyers, with disclosed deal values climbing 101.4% to $4.1 billion.
Deals in the pharmaceutical, biotechnology