Q3 2024 Healthcare Industry Trends

Q3 2024 Key Highlights

Commure’s $120 million acquisition of Augmedix, an ambient AI medical documentation and data solutions company, joins Veradigm’s acquisition of ScienceIO as one of the largest AI deals in healthcare this year.

There were 75 financially sponsored transactions in 1st 3 Quarters 2024, with an aggregate value of $5.16 billion, representing 28 percent of the total volume and 49 percent of the total value, respectively.

Q3 2024 Key Trends

Total transaction value in Q3 2024 decreased by 62 percent over Q2 2024, from $4.7 billion to $1.8 billion.

Total transaction volume in Q3 2024 decreased by 14 percent over Q2 2024, from 90 to 77.

Regarding notable growth sectors, Health IT volume slightly increased from 39 deals in Q2 2024, to 42 deals in Q3 2024.

Multiples & Value Trends

The median revenue multiple from 2023 through the 1st 3 Quarters of 2024 decreased slightly from 2.6x to 2.5x.

The median EBITDA multiple from 2023 through the 1st 3 Quarters of 2024 fell 26 percent, from 12.5x to 9.2x.

Top Ten Deals Through Q3 2024

The top ten deals by value have seen three new additions since our half-year report. These included Agilsys’ acquisition of Book4Time, the global leader in spa and health club management SaaS software, for $150 million, Perdoceo Education Corporation’s announced acquisition of University of St. Augustine for Health Sciences, a graduate institution, for $144 million, and the previously mentioned acquisition of Augmedix by Commure.

These three transactions, with an aggregate value of $414 million, represented 23 percent of transaction value in Q3 2024.