Health IT M&A highly 'active' through first half of 2013

For the first half of 2013, health information technology saw more action in mergers and acquisitions than segments like healthcare business services, consumer health and pharma IT, according to a new report from New York-based investment bank Berkery Noyes.

Remaining the "most active" segment of the Healthcare/Pharma Information and Technology industry, health IT accounted for 63 transactions, 40 percent of the industry's aggregate volume in the first half of 2013.

Deal volume has increased 16 percent since 2012, and transaction volume has increased 58 percent, from $5.08 million in the second half of 2012 to $8.03 billion in the first half of 2013. Three transactions that put health IT at the top of this list include:

  • athenahealth's $293 million Epocrates deal: San Mateo, Calif-based mobile medical app provider Epocrates was purchased by Watertown, Mass.-based athenahealth in January, giving the latter a foothold in the mobile health industry.
  • Allscripts' $188 million acquisition of dbMotion: In March, Allscripts bought the top-rated patient engagement solution provider, hoping to deliver "comprehensive care coordination."
  • Qiagen's $109 million acquisition of Ingenuity Sytems: Ingenuity, a provider of applications for analyzing genomic data, was acquired by Qiagen, a Netherlands technology company that transforms biological materials into molecular information, in April.

"The breadth of acquirers for HIT companies continues to expand as buyers look to capitalize on the size, rapidly evolving dynamics and growth characteristics of the healthcare market," Jonathan Krieger, managing director at Berkery Noyes, said in a statement. "Acquirers are aggressively looking to broaden product suites, leverage distribution channels, and realize revenue and cost synergies."

Mercom Capital Group reported in April that health IT companies raised a record $493 million in venture capital during the first quarter of 2013, with 104 deals completed.

To learn more:
- read the report (.pdf)
- here's the announcement

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