Mercom Capital Group Reports Second Quarter 2011 Funding and M&A Activity for Healthcare IT

Venture Capital (VC) funding in the healthcare IT sector in Q2 2011 almost doubled with $66 million in six deals compared to $35 million in seven deals in the previous quarter. VC funding for the same quarter last year came to $93 million in five deals.

The top VC funding rounds included a $27 million raise by ABILITY Network, $23 million by Practice Fusion, $11.5 million by Explorys and $4 million by MyHealthDIRECT. Fifteen different VC investors participated in healthcare IT funding rounds.

M&A activity in the healthcare IT sector had dipped in Q1 2011 but saw an upturn this quarter with $703 million going into 23 deals compared to $306 million in 14 deals during Q1 of 2011.

Major M&A transactions included the acquisition of Vital Images by Toshiba Medical Systems for $273 million, Medical Present Value by Experian for $185 million and AdvanceMed by NCI for $62 million. Verisk Analytics acquired two companies: Bloodhound Technologies for $82 million and Health Risk Partners for $60 million.

Health Information Management companies were involved in the most funding and M&A transactions this quarter.

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