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2014 Full Year

 
 

2014 l Full Year l Trends Report l Healthcare Industry

Wednesday, January 21, 2015

2014 Key Highlights

  • The Healthcare IT segment accounted for almost half of the industry's aggregate deal volume. Strategic acquirers comprised 70 percent of the Healthcare IT segment's volume.
  • The industry's most active private equity acquirers in 2014 were Thoma Bravo, LLC and Blackstone Group LP with four transactions each.
  • The largest Pharma IT deal in 2014 was Dassault Systemes SA's acquisition of Accelrys, Inc., a provider of scientific lifecycle management software for chemistry, biology, and materials research, for $652 million.

2014 Key Trends

  • Total transaction volume in 2014 increased by 17 percent over 2013, from 328 to 385. This marked a return to its 2012 level.
  • Total transaction value in 2014 rose by 26 percent over 2013, from $11.88 billion to $15.02 billion.
  • The industry's median enterprise value multiples remained nearly constant. However, median transaction value continued its upward trajectory, improving from $21 million in 2013 to $25 million in 2014.
  • The segment with the largest rise in volume in 2014 over 2013 was Consumer Health with a 43 percent increase, from 23 to 33 transactions.

M&A Market Overview

Berkery Noyes tracked 1,101 Healthcare/Pharma Information and Technology transactions between 2012 and 2014, of which 222 disclosed financial terms, and calculated the aggregate value to be $30.83 billion. Based on known transaction values, we project values of 879 undisclosed transactions to be $7.53 billion, totaling $38.37 billion worth of transactions tracked over the past three years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 2.4x revenue and 10.7x EBITDA.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment