A total of 136 digital health companies were acquired in the first half (1H) of 2021, compared to 83 in 1H 2020, a 64% increase in year-over-year M&A activity, according to the latest Mercom Digital Health Funding and M&A Report.
Telemedicine companies led M&A activity with 25 transactions, followed by Practice Management Solutions providers with 20 transactions. mHealth Apps, Data Analytics, and Clinical Decision Support companies were involved in 10 transactions each. Nine Digital Wellness companies were also acquired.
The top M&A transaction was by Microsoft, which entered into a definitive agreement to acquire Nuance, an AI-powered conversational and cloud-based ambient clinical intelligence solution for healthcare providers, in an all-cash transaction valued at $19.7 billion.
UnitedHealth Group’s Optum has agreed to acquire Change Healthcare, a healthcare revenue cycle management solution provider, for a total consideration of $13 billion.
Other large M&A transactions (by disclosed amount) during in 1H 2021:
Datavant, a healthcare data-sharing platform company, and Ciox Health, a clinical data exchange platform, signed a definitive agreement to merge the two companies in a transaction valued at $7 billion.
KKR, an investment firm, agreed to acquire a majority interest in Therapy Brands, a practice management and electronic health record (EHR) software platform, for $1.5 billion.
Boston Scientific, a medical technology company, agreed to acquire Preventice Solutions, the wearable patches developer that remotely monitors cardiac arrhythmias, for $925 million.
Philips, a healthcare technology company, signed an agreement to acquire Capsule Technologies for $635 million from Francisco Partners. Capsule Technologies offers a medical device information system that liberates, aggregates, analyzes, and shares clinical data from connected devices to make more informed decisions.
Appriss Health, a cloud-based care coordination software and analytics solutions focused on behavioral health and substance use disorders, entered into a definitive agreement to acquire care collaboration software platform PatientPing for approximately $500 million.
According to the Mercom digital health M&A database, nearly 2,000 digital health companies have been acquired/merged since 2010. Learn more.
M&A, Digital Health, Telehealth, Wearables, Revenue Cycle Management, Clinical Decision Support