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Trend Reports

2014 Mid Year

 
 

2014 l 1st Half l Trends Report l Healthcare Industry

Thursday, July 17, 2014

1ST HALF 2014 KEY HIGHLIGHTS

  • Dassault Systemes SA's acquisition of Accelrys, Inc. for $652 million was the largest transaction in 1st Half 2014.
  • The most active strategic acquirer year-to-date was Merck & Co., Inc. with three transactions. This consisted of MedHelp and Tomorrow Networks, LLC through Physicians Interactive, in which Merck owns a controlling stake; and C3i, Inc. through Merck's subsidiary Telerx.
  • The most active financial sponsors in 1st Half 2014 were Thomas H. Lee Partners, L.P., Symphony Technology Group, and Vestar Capital Partners with three transactions each.
  • Strategic acquirers accounted for 51 transactions and 68 percent of total volume in the Healthcare IT segment.

1ST HALF 2014 KEY TRENDS

  • Total transaction volume in 1st Half 2014 increased by 18 percent over 2nd Half 2013, from 169 to 199.
  • Total transaction value in 1st Half 2014 rose by 46 percent over 2nd Half 2013, from $3.73 billion to $5.45 billion.
  • The median revenue multiple decreased from 2.5x in 2nd Half 2013 to 2.0x in 1st Half 2014. The median EBTDA multiple declined from 9.7x in 2nd Half 2013 to 8.5x in 1st Half 2014.
  • The segment with the largest rise in volume in 1st Half 2014 over 2nd Half 2013 was Pharma IT with a 60 percent increase, from 15 to 24 transactions.

M&A Market Overview

Berkery Noyes tracked 916 Healthcare/Pharma Information and Technology transactions between 2012 and 1st Half 2014, of which 181 disclosed financial terms, and calculated the aggregate transaction value to be $23.13 billion. Based on known transaction values, we project values of 735 undisclosed transactions to be $5.66 billion, totaling $28.78 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 2.3x revenue and 10.2x EBITDA.



 

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Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment