2009 Key Highlights
- The largest transaction for 2009 was TPG Capital and CPP Investment Board who will acquire IMS Health Incorporated for $4.01 billion.
- The most active buyers in the Healthcare Information & Technology Industry by way of volume of transactions either purchased direct or through partner or affiliated business announced for 2009 each with 3 transactions to their credit were Veronis Suhler Stevenson, UnitedHealth Group, General Atlantic, LLC, Francisco Partners and Phase Forward.
2009 vs. 2008 Key Trends
- Total transaction volume in 2009 decreased by 12 percent over 2008 from 209 in 2008 to 184 in 2009.
- Total transaction value in 2009 decreased by 16 percent over 2008, from $9.43 billion in 2008 to $7.89 billion in 2009.
- The segment with the largest decrease in volume in 2009 over 2008 was Medical Education with a 27 percent decrease from 15 transactions in 2008 to 11 transactions in 2009.
- Financially sponsored transactions represented 24 percent of the volume and 65 percent of the value for 2009 as opposed to 26 percent of the volume and 31 percent of the value for 2008. This is a decrease of 9 percent in market share volume and an increase of 107 percent in market share value from 2008 to 2009. Financially backed transactions are increasing in size, but there are fewer deals than last year.
2007-2009 Market Overview
Out of 581 transactions tracked by Berkery Noyes between 2007 and 2009 we determined the aggregate transaction values paid for transactions, where the values of 210 were disclosed (known), to be $21.10 billion. Based on known transaction values, using a histogram on a logarithmic scale, we project values of 371 undisclosed (unknown) transactions to be $5.83 billion for a combined total of $26.93 billion worth of transactions tracked over the past three years.
Berkery Noyes determined that nearly one-third of companies we observed have revenues of $4 million to $20 million.
Transactions receiving transaction values greater than $160 million garnered the higher median enterprise value multiple of 2.83 times revenue which is 143 percent greater than companies who received transaction values of $10 to $20 million which captured a median transaction value of 1.16 times revenue.