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Trend Reports

2015 Mid Year

 
 

2015 l 1st Half l Trends Report l Healthcare Industry

Wednesday, July 15, 2015

1ST HALF 2015 KEY HIGHLIGHTS

  • The largest transaction in 1st Half 2015 was MEDNAX, Inc.'s acquisition of vRad, an outsourced radiology physician services and telemedicine company, for $500 million.
  • The most active acquirer year-to-date was CompuGroup Medical AG with four deals: Stock Informatik Gmbh & Co KG, Zorgverband, Compufit Bvba and Medical EDI Services.
  • Strategic acquirers accounted for 80 transactions and 79 percent of total volume in the Healthcare IT segment.

1ST HALF 2015 KEY TRENDS

  • Total transaction volume in 1st Half 2015 increased by 16 percent over 2nd Half 2014, from 190 to 220.
  • Total transaction value in 1st Half 2015 fell by 43 percent over 2nd Half 2014, from $10.70 billion to $6.06 billion. However, total value gained 24 percent on a year-over-year basis. Also of note, seven of the industry‚Äôs top ten largest deals last year occurred in 2nd Half 2014. 
  • The median revenue multiple decreased from 3.0x in 2nd Half 2014 to 2.7x in 1st Half 2015. This remained slightly above its median throughout the last 30 months. Moreover, median value continued its upward trajectory.
  • The segment with the largest rise in volume in 1st Half 2015 over 2nd Half 2014 was Medical Education, which more than doubled, from 9 to 20 transactions. Healthcare Business Services increased 53 percent, from 34 to 52 transactions. 

M&A Market Overview

Berkery Noyes tracked 936 Healthcare/Pharma Information and Technology transactions between 2013 and 1st Half 2015, of which 178 disclosed financial terms, and calculated the aggregate transaction value to be $24.76 billion. Based on known transaction values, we project values of 758 undisclosed transactions to be $8.53 billion, totaling $33.29 billion worth of transactions tracked over the past two and a half years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.6x revenue and 12.1x EBITDA.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment