NEW YORK — January 8, 2021 — Berkery Noyes, an independent mid-market investment bank, today released its full year 2020 mergers and acquisitions trend report for the Healthcare/Pharma Information and Technology Industry.
The report analyzes merger and acquisition activity for the industry during 2019 and compares it with data covering 2018 and 2019. This market includes information, technology, digital, and services companies servicing the pharmaceutical, healthcare payer, and healthcare provider spaces.
Total deal volume in 2020 improved by three percent over 2019, from 538 to 553. Total deal value in 2020 gained 38 percent over 2019, from $35.77 billion to $49.36 billion. The median revenue multiple increased from 2.3x in 2019 to 3.0x in 2020. The median EBITDA multiple rose from 12.4x to 16.4x during this timeframe.
Deal volume in the Healthcare IT segment underwent a two percent uptick on a year-to-year basis. Notable segment deals over the past year included WellSky’s acquisition of CarePort Health, which bridges acute and post-acute EHR data and provides visibility into the patient journey for providers, physicians, payers, and ACOs, for $1.35 billion; TelaDoc’s acquisition of InTouch Health, a provider of enterprise telehealth solutions for hospitals and health systems, for $600 million; and Align Technology’s acquisition of exocad, which offers dental CAD/CAM software to dental labs and dental practices, for $412 million.
The Healthcare Business Services segment saw an eight percent decline in volume. The segment’s largest deal in 2020 was TelaDoc’s announced merger with Livongo for $16.6 billion. The combination of TelaDoc and Livongo will create a global leader in consumer-centered virtual care.
Transaction volume in the combined Pharma segments decreased seven percent. However, the Pharma IT segment alone experienced a 27 percent gain. The largest Pharma related deal in 2020 was Clarivate Analytics’ acquisition of Decision Resources Group, a provider of data, analytics and insights products and services used by pharma, biotech and medical technology companies, for $950 million.
A copy of the HEALTHCARE/PHARMA INFORMATION AND TECHNOLOGY INDUSTRY M&A REPORT FOR FULL YEAR 2020 is available at the Berkery Noyes website.