2010 Key Highlights

  • The largest transaction in 2010 was the merger of Allscripts-Misys Healthcare Solutions, Inc. with Eclipsys Corporation for $1.27 billion.
  • UnitedHealth Group was the most active acquirer by volume, with five acquisitions: A-Life Medical, Inc., Axolotl Corporation, Executive Health Resources, Inc., Picis, Inc. and QualityMetric, Inc.
  • There were 53 financially sponsored transactions in 2010, with an aggregate value of $2.87 billion, representing 24 percent of the total volume and 39 percent of the total value, respectively.

2010 Key Trends

  • Total transaction volume increased by 13 percent over 2009, from 199 in 2009 to 224 in 2010.
  • Total transaction value increased by 81 percent over 2009, from $6.43 billion in 2009 to $11.62 billion in 2010.
  • Both the median EBITDA and revenue multiples have increased from 2009, with the EBITDA multiple rising 36 percent from 8.1 to 11.0 and the revenue multiple rising 50 percent from 1.2 to 1.9.

M&A Market Overview

Berkery Noyes tracked 825 transactions between 2007 and 2010 of which 302 disclosed financial terms, and calculated the aggregate transaction value to be $28.80 billion. Based on known transaction values, we project values of 523 undisclosed transactions to be $7.97 billion totaling $36.77 billion worth of transactions tracked over the past four years.

The largest transaction tracked by Berkery Noyes between 2007 and 2010 was TPG Capital and CPP Investment Board’s acquisition of IMS Health Incorporated for $4.01 billion announced in November 2009.

Berkery Noyes determined that the nearly one-third of companies sold between 2007 and 2010 received transaction values between $4 million to $20 million.