NEW YORK — October 7, 2020 — Berkery Noyes, an independent mid-market investment bank, today released its third quarter 2020 mergers and acquisitions trend report for the Healthcare/Pharma Information and Technology Industry.
The report analyzes M&A activity during the three-month period and compares it with data for the previous six quarters. This market includes information, technology, and digital companies servicing the pharmaceutical, healthcare payer, and healthcare provider spaces.
Total volume in the third quarter increased by 19 percent over the second quarter. Financial sponsors accounted for 40 percent of volume in the third quarter, compared to 20 percent in the second quarter. Overall deal value rose from $2.4 billion to $22.6 billion and was driven in large part by TelaDoc’s announced merger with Livongo for $16.6 billion. However, if the TelaDoc-Livongo merger is excluded, value still more than doubled during the quarter. This was the industry’s highest value level over the past seven quarters.
M&A activity in the combined Pharma IT, Business Services, and Information segments increased 50 percent on a quarterly basis. Notable related deals in the third quarter included GoodRx’s acquisition of Scriptcycle, a healthcare technology company that provides prescription processing and adjudication services to patients, pharmacies, and employers; and PharmEasy’s acquisition of Medlife, which provides medicines, health products, doctor consultations, and tests on its website and app.
As for other select markets covered in the report, Healthcare IT volume improved 17 percent and represented nearly half of the industry’s aggregate activity in the third quarter. Meanwhile, the number of deals in the Healthcare Business Services segment improved five percent.
A copy of the HEALTHCARE/PHARMA INFORMATION AND TECHNOLOGY INDUSTRY M&A REPORT FOR THIRD QUARTER 2020 is available at the Berkery Noyes website.