Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its Half Year Mergers and Acquisitions Trends Report for the Pharma and Healthcare Information and Technology Industry.
The report analyzes merger and acquisition activity in the Pharma and Healthcare Information and Technology market over the first half of 2011 and compares it with activity in the four previous sixth-month periods. This market includes information and technology companies servicing pharma, healthcare payor and healthcare provider spaces.
Berkery Noyes data shows that while deal volume increased by seven percent to 143 transactions announced this half year, total aggregate deal value fell 28 percent to $3.4 billion from $4.8 billion in 2nd Half 2010. Despite this, both median deal value and median EBITDA multiples rose over the same time period.
“The data confirms what we are seeing in our deal flow,” said Tom O’Connor, managing director at Berkery Noyes. “Strategic buyers, including those with private equity backing, are looking to acquire smaller, fast growing companies with unique solutions in their current or related markets. We expected M&A activity in Pharma and Healthcare Information and Technology sectors to be robust for the next 18 to 24 months.”
Reed Elsevier and LLR Partners both announced three transactions this half year, tying as the most acquisitive companies in the Pharma and Healthcare space. Reed Elsevier purchased an e-clinical reference solution and two medical media companies, while LLR Partners focused their three purchases on medical record management.
For the full two-and-a-half period covered by the report, UnitedHealth Group was the most active acquirer covered in this report, making nine transactions: A-Life Medical, Inc., Axolotl Corporation, Executive Health Resources, Inc., Picis, Inc., ChinaGate, QualityMetric, Inc., Scriptswitch Limited, CareMedic Systems, Inc. and AIM Healthcare Services, Inc.
Unique among investment banking firms, Berkery Noyes combines independent strategic research and industry intelligence with senior information technology banking expertise. Long having been an innovator in database and research technology in M&A, Berkery Noyes has committed itself to providing more expansive and more current information on the acquisition activity in their respective sectors.
A copy of the First Half 2011 Pharma and Healthcare Information and Technology Industry M&A Report is available at the Berkery Noyes website.
About Berkery Noyes
Berkery Noyes is an independent investment banking advisory firm servicing the information industry. Focused on middle-market corporations and financial sponsors, Berkery Noyes is committed to delivering a comprehensive array of industry-leading advisory services. Since its founding by Joseph W. Berkery in 1983, the firm has worked with corporate clients to grow through acquisition, divest non-core assets, and maximize shareholder returns through strategic transactions and restructurings. For private owners, Berkery Noyes helps create liquidity and execute timely exit strategies that achieve the personal and professional objectives. For more information, visit www.berkerynoyes.com