$4.2 billion of Healthcare IT/Digital Health
funding year-to-date is ahead of 2015’s pace
Capital Group, llc, a global communications and research firm, released its report
on funding and mergers and acquisitions (M&A) activity for the Healthcare
Information Technology (IT) / Digital Health sector for the third quarter of
2016. Mercom’s comprehensive report covers deals of all sizes across the globe.
To learn more about the report, visit: http://bit.ly/MercomHITQ32016
capital (VC) funding in the Health IT sector, including private equity and
corporate venture capital, totaled $1.3 billion in 177 deals in Q3 2016 compared to $1.6 billion in 140 deals in Q2 2016. So far this year, more than $4.2
billion has been raised in 463 deals, well north of the $3.6 billion raised
during the same period in 2015.
funding deals continue to be strong, especially in
China, boosting overall totals,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. “2016 is
on pace to be the best fundraising year for the sector.”
were 118 VC funding deals involving U.S. companies in Q3 2016 and 59 deals with
companies from other countries around the world. In Q2, 108 VC funding deals
were recorded in the U.S. and 32 in the rest of the world.
were 87 deals that were $2 million or below, including 47 Accelerator/Incubator
deals in the third quarter of 2016. This is a significant increase from Q2 2016 when there were
just 43 deals that totaled $2 million or below with only 12
consumer-centric companies raised $851 million in 128 deals, accounting for 68
percent of the total $1.25 billion raised this quarter compared to $1.2 billion
in 95 deals in Q2 2016. Healthcare practice-centric companies secured 32 percent
of the funding with $404 million in 49 deals, compared to the $360 million raised
in 45 deals in Q2 2016.
top funded areas were mHealth apps with $253 million, Telemedicine
companies with $220 million, Practice Management Solutions companies with $82
million, Consulting companies with $77 million, Mobile Wireless with $75
million, Wearables and Sensors with $74 million, Remote Monitoring with $65
million and Payer Solutions companies with $50 million.
top VC deals for Q3 2016 included: Meet You, provider of a social, health, and
fertility tracking app for women which raised $151 million; Accolade, developer
of a mobile app for professional health concierge services, secured $70
million; Neusoft Xikang Healthcare Technology, provider of a remote health
monitoring device for individuals and families, which raised $64 million; ClearCare,
provider of an online software platform for the home care industry, secured $60
million; InstaMed, a Healthcare Payments Network that simplifies every
healthcare clearinghouse and payment transaction for providers and payers all
in one place, raised $50 million; and Specialists On Call (SOC), a provider of
specialty physician consultations to acute care hospitals via telemedicine,
raised $50 million.
total of 309 investors participated in Healthcare IT deals in Q3 2016 with 13 investors participating in multiple rounds. Bessemer Venture
Partners and Canaan Partners were on top with three deals each.
were 53 M&A transactions (16 disclosed) involving Healthcare IT companies
this quarter, compared to the same number of transactions (seven disclosed),
the previous quarter. Merger and acquisition activity was led by Mobile Health Apps with eight
transactions, Practice Management Solutions companies tallied five, and Data
Analytics, Population Health Management, and Remote Monitoring companies had four
The top disclosed
M&A transaction was the $2.35 billion acquisition of Press Ganey Associates
by EQT Equity fund EQT VII. Other large transactions included: Thoma
Bravo which acquired Imprivata for approximately $544 million and took the
company private; Atos acquired Anthelio Healthcare Solutions from its
shareholders Actis and McLaren Health Care Corporation for an enterprise value
of $275 million; Evolent Health’s acquisition of Valence Health for $145
million; Loblaw Companies acquired QHR Corporation for $132 million; and
iHealth Labs’ acquisition of eDevice for $106 million.
Apps and Data Analytics companies have been involved in the most M&A transactions
so far in 2016 with 19 and 15 transactions respectively.
are a total of 595 companies and investors covered in this report.
Mercom’s comprehensive report covers deals of all
sizes across the globe. Our report does not include bioinformatics deals.
About Mercom Capital Group
Capital Group, llc, is a global communications and consulting firm focused on
healthcare information technology, cleantech and financial communications.
Mercom delivers highly respected industry market intelligence reports covering
Health IT/Digital Health, Solar Energy, and Smart Grid, Battery Storage &
Efficiency. Our reports provide timely industry happenings and ahead-of-the-curve
analysis specifically for C-level decision making. Mercom’s consulting
division advises companies on new market entry, custom market intelligence and
overall strategic decision-making. Mercom’s communications division helps
companies and financial institutions build powerful relationships with media,
analysts, government decision-makers, local communities and strategic
partners. For more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular
market intelligence reports, visit: http://mercomcapital.com/market_intelligence.php.
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