Wednesday, October 22, 2014
Q3 2014 KEY HIGHLIGHTS
The highest value transaction in Q3 2014 and year-to-date was Cognizant's acquisition of TriZetto for $2.7 billion in the Healthcare IT segment.
The industry's most active acquirer year-to-date was Premier, Inc., which provides data, analytics, supply chain solutions and other services, with four transactions: The largest of these deals was the acquisition of TheraDoc, Inc., a provider of electronic clinical surveillance software, for $117 million in Q3 2014.
Q3 2014 KEY TRENDS
Total transaction volume in Q3 2014 declined by eight percent over Q2 2014, from 95 to 87. However, volume year-to-date increased 16 percent compared to the corresponding timeframe in 2013.
Total transaction value in Q3 2014 more than doubled over Q2 2014, from $3.2 billion to $7.0 billion.
MULTIPLES & VALUE TRENDS
The median revenue multiple from 2013 through the 1st 3 Quarters of 2014 fell by 28 percent, from 2.5x to 1.8x.
The median EBITDA multiple from 2013 through the 1st 3 Quarters of 2014 decreased by 12 percent, from 10.9x to 9.6x.
TOP TEN DEALS THROUGH Q3 2014
The top ten deals by value have seen five new additions since our half year report. This included the industry's three largest transactions year-to-date. Also of note, strategic acquirers were responsible for eight of the top ten highest value deals through the 1st 3 Quarters of 2014.
These five transactions, with an aggregate value of $5.2 billion, represented 41 percent of transaction value in the 1st 3 Quarters of 2014 and 74 percent of Q3 2014 transaction value.