Q3 2021 Key Highlights
The industry’s largest transaction in Q3 2021 was a consortium led by Nordic Capital and Insight Venture Partners’ announced acquisition of Inovalon, a provider of cloud-based platforms supporting data-driven healthcare, for $7.3 billion.
Q3 2021 Key Trends
Total transaction volume in the 1st 3 Quarters of 2021 declined by one percent over the 1st 3 Quarters of 2020, from 411 to 406.
Total transaction value in the 1st 3 Quarters of 2021 increased by 14 percent over the 1st 3 Quarters of 2020, from $36.4 billion to $41.6 billion.
Both the Pharma IT and Healthcare IT segments saw notable gains in volume in the 1st 3 Quarters of 2021 over the 1st 3 Quarters of 2020. Pharma IT volume improved 23 percent, from 40 to 49 deals. Healthcare IT volume increased 15 percent, from 199 to 229 deals.
Multiples & Value Trends
The median revenue multiple on a year-over-year basis rose by 48 percent, from 2.7x to 4.0x.
The median EBITDA multiple on a year-over-year basis decreased by 22 percent, from 14.7x to 11.5x.
Top Ten Deals Through Q3 2021
The top ten deals by value have seen three new additions since our half year report, two of which were completed by financial sponsors.
These three transactions, with an aggregate value of $8.8 billion, represented 21 percent of transaction value in the 1st 3 Quarters of 2021 and 62 percent of Q3 2021 transaction value.