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

Funding activity was down in Q3 at $62M for seven transactions compared to $118M for six transactions during Q2.

M&A activity for the sector saw a surge in the number of deals. Out of eighteen M&A transactions, only two were disclosed for a total of $261M compared to the second quarter with a total of 9 deals of which five were disclosed for $2.2B. Notable transactions for the sector included a series D raise of $20M by Phreesia and the $260M acquisition of Chamberlin Edmonds by Emdeon. Raj Prabhu, Managing Partner of Mercom Capital Group, commented, “Health care IT funding actually dipped in Q3 even though the transactions numbers remained similar to Q2, but the number of M&A deals almost doubled even though most of the amounts were undisclosed.”

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