Mercom Capital Group Reports Funding and Merger and Acquisition Activity on Health Care IT for Second Quarter 2010

$118 million was invested in six transactions compared to $82 million for eight transactions during Q1.

Merger and acquisition (M&A) activity for the sector saw a decrease in the number of deals, but a significant increase in values with several large M&A transactions announced during the quarter. Out of nine M&A transactions, five of them were disclosed for a total of $2.2B compared to the first quarter with a total of 27 deals of which six were disclosed for $617.5M.

Raj Prabhu, Managing Partner of Mercom Capital Group, commented, “Q2 was a strong quarter for the health care technology sector with a lot of activity, both in equity investments and with some significant M&A transactions.” Notable transactions for the sector included a series C raise of $60M by Castlight Health, the $685M acquisition of Phase Forward by Oracle and the $1.3B merger of Allscripts and Eclipsys.

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