1st Half 2010 Key Highlights

  • The largest transaction by value was the announced acquisition of Allscripts- Misys Healthcare Solutions, Inc. by Eclipsys Corporation for $1.27 billion.
  • The largest segment by transaction volume was Healthcare IT, with 50 transactions.
  • Of the top ten transactions by value, three were financially sponsored transactions: Thomas H. Lee Partners, L.P.’s pending acquisition of inVentiv Health, Inc., for $909 million, Providence Equity Partners’ pending acquisition of Virtual Radiologic Corporation for $282 million, and OMERS Private Equity’s pending acquisition of Logibec Groupe Informatique Ltd. for $225 million.

1st Half 2010 Key Trends

  • Total transaction volume in 1st Half 2010 increased by 6 percent over 2nd Half 2009 from 108 in 2009 to 115 in 2010.
  • Total transaction value in 1st Half 2010 increased by 32 percent over 2nd Half 2009, from $5.34 billion in 2009 to $7.07 billion in 2010.
  • Revenue multiples in the industry experienced a 29% half-to-half increase from 1.4 in 2nd Half 2009 to 1.8 in 1st Half 2010. This is a 64% increase from the low of 1.1 in 1st Half 2009.

M&A Market Overview

Berkery Noyes tracked 521 transactions between 2008 and 1st Half 2010, of which 179 disclosed financial terms, and calculated the aggregate transaction value to be $17.43 billion. Based on known transaction values, we project the value of the 342 undisclosed transactions to be $4.75 billion for a combined total transaction value of $22.18 billion within the industry over the past 30 months.

The largest transaction by volume between 2008 and 1st Half 2010 was TPG Capital and CCP Investment Board’s acquisiton of IMS Health Inc. for $4.01 billion.

The most active buyer the past 30 months was Welsh, Carson, Anderson & Stowe with 8 transactions in the Healthcare Industry.