NEW YORK — July 12, 2021 — Berkery Noyes, an independent mid-market investment bank, today released its half year 2021 mergers and acquisitions trend report for the Healthcare/Pharma Information and Technology Industry.
The report analyzes M&A activity during the first half of 2021 and compares it with the four previous six-month periods from 2019 to 2020. This market includes information, technology, digital, and services companies utilized by the pharmaceutical, healthcare payer, and healthcare provider spaces.
Total transaction volume in first half 2021 decreased one percent over second half 2020. However, strategic volume improved 18 percent during this timeframe. Aggregate deal value declined 16 percent, from $34.71 billion to $28.99 billion. Of note, value more than doubled from first half 2020 to second half 2020.
The largest transaction in first half 2021 was Optum’s announced merger with Change Healthcare Corporation for $13.44 billion. Optum, a diversified health services company under UnitedHealth Group, is joining forces with Change Healthcare, which provides software and data analytics, technology-enabled services, and revenue cycle management offerings.
The segment with the largest rise in volume in first half 2021 over second half 2020 was Healthcare IT with a 19 percent gain. Notable segment deals year-to-date included the announced merger of Datavant, which helps healthcare organizations securely connect their data, and Ciox Health, a clinical data exchange platform, for $7 billion; and Royal Philips’ announced acquisition of Capsule Technologies, a provider of medical device integration and data technologies for hospitals and healthcare organizations, for $635 million.
Meanwhile, M&A volume in the Healthcare Business Services segment remained nearly constant. Notable Healthcare Business Services deals year-to-date included Accolade’s announced acquisitions of 2nd.MD, an online medical decision support company, for $460 million; and PlushCare, a virtual primary care and mental health platform, for $380 million.
A copy of the HEALTHCARE/PHARMA INFORMATION AND TECHNOLOGY INDUSTRY M&A REPORT FOR HALF YEAR 2021 is available at the Berkery Noyes website.