Wednesday, October 19, 2016
Q3 2016 KEY HIGHLIGHTS
The industry's highest value transaction in Q3 2016 was private equity firm EQT's announced acquisition of Press Ganey Associates, a healthcare performance improvement company that offers patient experience measurement, performance analytics and strategic advisory solutions, for $2.4 billion.
The largest Healthcare IT deal in Q3 2016 was Thoma Bravo's acquisition of Imprivata, a provider of authentication and security solutions used by hospitals, for $544 million.
Q3 2016 KEY TRENDS
Total transaction volume in the 1st 3 Quarters of 2016 saw a slight uptick over the 1st 3 Quarters of 2015, from 338 to 341.
Total transaction value in the 1st 3 Quarters of 2016 more than doubled over the 1st 3 Quarters of 2015, from $10.7 billion to $22.1 billion. There were three multibillion dollar deals year-to-date, as opposed to none during the corresponding timeframe in 2015.
MULTIPLES & VALUE TRENDS
The median revenue multiple remained nearly constant on a year-over-year basis at 2.6x. The median EBITDA multiple increased on a year-over-year basis from 10.4x to 13.9x.
TOP TEN DEALS THROUGH Q3 2016
The top ten deals by value have seen three new additions since our half year report. Of note, two of the three deals were backed by financial sponsors. Strategic acquirers nonetheless represented 86 percent of the industry's aggregate volume in Q3 2016.
These three transactions, with an aggregate value of $3.2 billion, represented 14 percent of transaction value in the 1st 3 Quarters of 2016 and 74 percent of Q3 2016 transaction value.