2015 Key Highlights
- The largest transaction in 2015 was Pamplona Capital Management LLP’s announced acquisition of MedAssets Inc., a healthcare performance improvement company, for $2.77 billion. Pamplona is planning to combine MedAssets’ revenue cycle management (RCM) business with Precyse, a health information management company that it acquired earlier in the year.
- The most active acquirer during the year, either directly or through an affiliated business, was CompuGroup Medical AG with seven transactions.
- Strategic acquirers represented 78 percent of volume and 57 percent of value in 2015.
2015 Key Trends
- Total transaction volume in 2015 increased by 15 percent over 2014, from 387 to 446.
- Total transaction value in 2015 saw a gain of four percent over 2014, from $16.44 billion to $17.08 billion.
- The median revenue multiple improved from 2.4x in 2014 to 2.7x in 2015. The median EBITDA multiple remained nearly constant at 13.8x, while the median value saw a significant increase.
- The segment with the largest rise in volume in 2015 over 2014 was Medical Education which more than doubled, from 18 to 39 transactions.
M&A Market Overview
Berkery Noyes tracked 1,162 Healthcare/Pharma Information and Technology transactions between 2013 and 2015, of which 229 disclosed financial terms, and calculated the aggregate value to be $33.14 billion. Based on known transaction values, we project values of 933 undisclosed transactions to be $13.11 billion, totaling $46.25 billion worth of transactions tracked over the past three years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 2.7x revenue and 13.0x EBITDA.