NEW YORK — January 15, 2023 — Berkery Noyes, an independent mid-market investment bank, today released its full year 2022 mergers and acquisitions trend report for the Healthcare/Pharma Information and Technology Industry.
The report analyzes merger and acquisition activity for the industry during 2022 and compares it with data covering 2020 and 2021. This market includes information, technology, digital, and services companies servicing the pharmaceutical, healthcare payer, and healthcare provider spaces.
Total deal volume in 2022 declined by 16 percent over 2021, from 539 to 451. Total deal value in 2022 decreased by 71 percent over 2021, from $94.71 billion to $27.78 billion. The median revenue multiple decreased from 4.2x in 2021 to 2.3x in 2022. The median EBITDA multiple decreased from 12.7x in 2021 to 11.7x in 2022. Over the past three years, deals in the $10-$20 million range received a median enterprise value multiple of 1.7x revenue, compared to 3.1x revenue for those in the $20 million and above range.
M&A volume in the Healthcare Business Services segment gained nine percent on an annual basis. High profile Healthcare Business Services transactions during 2022 included CVS Health’s announced acquisition Signify Health, a provider of technology-enabled in-home healthcare solutions, for $7.7 billion; R1 RCM Inc.’s acquisition of Cloudmed, which offers Revenue Intelligence solutions for healthcare providers, for $4 billion; and H.I.G. Capital’s acquisition of Barton & Associates, a healthcare staffing company.
The Healthcare IT segment experienced an 29 percent decline in volume. Notable deals in the segment included TPG’s announced acquisition of ClaimsXten, a rules-based claims payment software solution for healthcare payers, for $2.2 billion; Zebra Technologies’ acquisition of Matrox Imaging, a developer of advanced machine vision components, software and systems, for $875; and N. Harris Computer Corporation acquisition of Allscripts’ Hospitals and Large Physician Practices business segment, for $700 million.
As for other select markets covered in the report, the Pharma IT segment experienced a 27 percent decline in volume, from 62 to 45 deals. A notable transaction in the segment included Warburg Pincus’ acquisition of Pharma Intelligence, a provider of specialist intelligence, data, and software for clinical trials, drug development, and regulatory compliance. Meanwhile, the Medical Education segment gained 17 percent, from 35 to 41 transactions.
A copy of the HEALTHCARE/PHARMA INFORMATION AND TECHNOLOGY INDUSTRY M&A REPORT FOR FULL YEAR 2022 is available at the Berkery Noyes website.