Berkery Noyes, a leading middle market investment bank, has released its 2010 Half Year Pharma and Healthcare Information and Technology M&A Trends Report. This report analyzes merger and acquisition activity in the Healthcare Industry in the first half of 2010 and compares it with activity in the four previous sixth month periods from 2008-2009.
Revenue multiples in the industry experienced a 29% half-to-half increase from 1.4 in 2nd Half 2009 to 1.8 in 1st Half 2010. This is a 64% increase from the low of 1.1 in 1st Half 2009.
Volume also saw an increase, with transaction numbers in 1st Half 2010 exceeding each previous half-year since 2008. Percentages of financially sponsored transactions have remained static, oscillating between 27% and 24% of total transactions each of the past five half-year periods.
The Consumer Health segment saw a 90% increase in transaction volume, from 10 in 2nd Half 2009 to 19 in 1st Half 2010. Acquisitions of health-related websites were the primary catalyst for such growth, as there were nine transactions in the segment in 1st Half 2010.
Of the top ten transactions by value, three were financially sponsored transactions: Thomas H. Lee Partners, L.P.’s acquisition of inVentiv Health, Inc., for $909 million, Providence Equity Partners’ pending acquisition of Virtual Radiologic Corporation for $282 million, and OMERS Private Equity’s pending acquisition of Logibec Groupe Informatique Ltd. for $225 million.