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$7
billion in M&A activity recorded
Mercom Capital Group, llc, a global
communications and consulting firm, released its report on funding
and mergers and acquisition (M&A) activity for the Healthcare IT (HIT)
sector during 2012.
Venture
Capital (VC) funding totaled nearly $1.2 billion in 163 deals in 2012 compared
to $480 million in 49 deals in 2011 and $211 million in 22 deals in 2010. The
fourth quarter of 2012 saw the largest number of deals in a quarter since
Mercom started tracking the sector in 2010.
“While
the focus of funding has been in the Health Information Management [HIM]
category, which covers technologies on the Healthcare Practice side, there is
significant investment and funding going into companies that engage the
consumers—like mobile health, telehealth, personal health and social health,” said
Raj Prabhu, managing partner of Mercom
Capital Group. “The HIT sector really took off in 2012; the deal count
tripled and number of investments doubled compared to 2011.”
The
Top 5 VC funding deals in 2012 were: Castlight Health, a provider of healthcare
web and mobile-based transparency solutions that enable comparisons of doctors,
hospitals and medical procedures based on price and quality, which raised $100
million, 23andMe, a personal genetics company that helps with the understanding
of wellness and disease prevention through its personal genome service, which
raised $58 million, GoHealth, an online portal that helps compare and shop
health insurance coverage, which raised $50 million, Kinnser Software, a
provider of clinical support to home health companies, which raised $40 million,
and Practice Fusion, a provider of free web-based electronic medical records
(EMR), which raised $34 million.
The
top investors that participated in VC funding rounds in 2012 were: Connecticut Innovations,
Founders Fund, Merck Global Health Innovation Fund, Qualcomm, and West Health
Investment Fund, all with four deals each. Other notable investors were
Aberdare Ventures, Canaan Partners, First Round Capital, and Khosla Ventures,
all with three deals each.
M&A
activity in the Healthcare IT sector was robust with 163 transactions
totaling approximately $7 billion in 2012. McKesson was the most active
acquirer with four transactions. There were 14 other companies with two
acquisitions each. Thirteen private equity firms also made acquisitions in
2012.
Most
of the M&A activity was centered on HIM companies. Within HIM, 16 Practice
Management companies were involved in M&A, as well as 15 Clinical Decision
Support companies and 16 EMR/EHR companies among others.
Top
5 M&A transactions included the $1.4 billion acquisition of Sunquest
Information Systems, a provider of diagnostic information technology and
clinical and anatomic laboratory software solutions by Roper Industries, the
$1.25 billion acquisition of Thomson Reuters’ healthcare data and analytical
solutions by Veritas Capital, the $1.1 billion acquisition of M*Modal, a
medical transcription services company by One Equity Partners, the $635 million
acquisition of consulting firm Decision Resources Group by Piramal Healthcare,
and the $473 million acquisition of HIT consultants maxIT Healthcare by Science
Applications International Corporation.
To
learn more about the report, visit: http://store.mercom.mercomcapital.com/healthcare-it-reports/
About Mercom Capital Group
Mercom Capital Group, llc,
is a global communications and consulting firm focused on healthcare
information technology (HIT), cleantech and financial communications. Mercom
delivers highly respected industry market intelligence reports covering
Healthcare IT, Solar Energy, Wind Energy and Smart Grid. 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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