The number of Health IT companies that have changed hands or partnered up is on the rise, according to a new report from investment banking firm Berkery Noyes.
Merger and acquisition activity in the healthcare information technology sector increased by 28 percent to 196 deals in the first half of 2012 compared with the second half of 2011. Private equity and venture capital represented 27 percent of the deals, up 7 percent over the same period last year.
The biggest deals involved some familiar names, including Thomson Reuters, T-System Technologies, and Apax Partners.
The biggest transaction in the first half of the year was Veritas Capital Partners' $1.25 billion purchase of Thomson Reuters' Healthcare Business, a subsidiary of Thomson Reuters.
The most active strategic acquirers were Medical Transcription Billing Corp., T-System Technologies, Ltd., and Sharecare, Inc. with three acquisitions each, according to Berkery Noyes.
The most active financial acquirers in the industry, including acquisitions made by their portfolio companies, were Apax Partners, Thomas H. Lee Partners, L.P., and TPG Capital with three acquisitions each.
Like the industry itself, investors are attracted to health IT for its potential to reduce costs and improve outcomes, the Wall Street Journal notes.
Venture capitalists made 27 health IT deals worth $184 million during the first quarter of this year, according to consulting firm Mercom Capital Group.