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Trend Reports

2015 Third Quarter

 
 

2015 l 3rd Qtr l Trends Report l Healthcare Industry

Wednesday, October 14, 2015

Q3 2015 KEY HIGHLIGHTS

  • The largest transaction in Q3 2015 and year-to-date was IBM Watson Health's acquisition of Merge Healthcare Incorporated, a provider of medical image handling and processing, interoperability and clinical systems, for $1 billion.
  • Strategic acquirers accounted for 84 percent of Healthcare IT volume in Q3 2015.

Q3 2015 KEY TRENDS

  • Total transaction volume in Q3 2015 declined by six percent over Q2 2015, from 112 to 105. However, volume year-to-date increased by 13 percent compared to the corresponding timeframe in 2014. In addition Q2 2015 was the peak for volume throughout the past seven quarters.
  • Total transaction value in Q3 2015 more than tripled over Q2 2015, from $1.4 billion to $4.3 billion, in line with its Q1 2015 level.

MULTIPLES & VALUE TRENDS

  • The median revenue multiple from 2014 through the 1st 3 Quarters of 2015 moved upward by 13 percent, from 2.4x to 2.7x.
  • The median EBITDA multiple from 2014 through the 1st 3 Quarters of 2015 remained nearly constant at 13.4x.

TOP TEN DEALS THROUGH Q3 2015

The top ten deals by value have seen six new additions since our half year report. This included three of the industry's five largest transactions year-to-date. Also of note, strategic acquirers were responsible for nine of the top ten highest value deals through the 1st 3 Quarters of 2015.

These six transactions, with an aggregate value of $3.0 billion, represented 29 percent of transaction value in the 1st 3 Quarters of 2015 and 70 percent of Q3 2015 transaction value.



 

Top Ten Deals