TECH­NOL­OGY: Three sets of reg­u­la­tions pave way for mean­ing­ful use, push en­cryp­tion

... but value of health­care transactions climbs

Modern Healthcare - - FRONT PAGE - Beth Kutscher

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

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.