Megadeals

GE/Veritas Capital

Seller: GE

Buyer: Veritas Capital

Announced: April 2018

Deal Value: $1.1B

Veritas Capital GE Healthcare

Veritas Capital is a private equity firm that invests in companies that provide solutions in aerospace & defense, healthcare, technology, national security, and more.  GE is a leading provider of open architecture computing and electronic systems for a variety of solutions.  The healthcare portion of GE works with hardware, software, and biotech.  The specific portion that was bought was the Value-Based Care division.

ABILITY Network/Inovalon Holdings

Seller: ABILITY Network

Buyer: Inovalon Holdings

Announced: March 2018

Deal Value: $1.2B

Inovalon ABILITY Network

Inovalon is a leading technology company that provides cloud-based platforms to create data-driven transformations from the volume-based to value-based models for care. ABILITY is a cloud-based provider of real-time connectivity and analytics.  This deal marks Inovalon’s second since going public and is the larger of the two.

Flatiron Health/Roche Holding

Seller: Flatiron Health

Buyer: Roche Holding

Announced: February 2018

Deal Value: $1.9B

Roche Holding Logo Flatiron Health logo

Roche is a global pioneer in pharmaceuticals and diagnostics focused on advancing science to improve people’s lives. The combined strengths of pharmaceuticals and diagnostics under one roof have made Roche the leader in personalized healthcare. Flatiron Health is a healthcare technology and services company focused on accelerating cancer research and improving patient care. Flatiron will continue to operate separately from Roche after the acquisition.

eviCore/Express Scripts

Seller: eviCore

Buyer: Express Scripts

Announced: October 2017

Deal Value: $3.6B

Express Scripts eviCore

eviCore offers proven, diversified medical benefits management solutions that help clients reduce costs while increasing quality of care for their members. Express Scripts provides integrated pharmacy benefit management services, including network-pharmacy claims processing, home delivery pharmacy care, specialty pharmacy care, specialty benefit management, benefit-design consultation, drug utilization review, formulary management, and medical and drug data analysis services.

CoverMyMeds/McKesson Corporation

Seller: CoverMyMeds

Buyer: McKesson Corporation

Announced: January 2017

Deal Value: $1.1B

McKesson Corporation CoverMyMeds

CoverMyMeds is a leader in electronic prior authorization solutions, and one of the fastest growing health care technology companies in the United States. A longtime partner of healthtech giant McKesson, CoverMyMeds automates the medication prior authorization process for more than 500 electronic health records systems, 49,000 pharmacies, 700,000 providers and most health plans and pharmacy benefit managers. CoverMyMeds will operate as an independent business unit, with its original founders continuing in their management roles.

Cloud Platform

Praxify/athenahealth

Seller: Praxify

Buyer: athenahealth

Announced: June 2017

Deal Value: $63M

Athenahealth Praxify

Praxify's solutions transform the EHR experience for clinicians with streamlined workflows, intuitive mobile interfaces and real-time analytical feedback. athenahealth partners with hospital and ambulatory clients to drive clinical and financial results. They offer medical record, revenue cycle, patient engagement, care coordination and population health services. They combine insights from their network of 99 thousand providers and 88 million patients with deep industry knowledge and perform administrative work at scale. The applications developed by Praxify will be integrated into athenahealth’s existing infrastructure.

Hospicesoft/Optima Healthcare Solutions

Seller: Hospicesoft

Buyer: Optima Healthcare Solutions

Announced: May 2017

Optima Healthcare Solutions Hospicesoft

Hospice Management Suite is partnered with Q90 Corporation, a top-notch software development company that has been providing technology solutions for the healthcare industry since 1993. Optima Healthcare Solutions is a leading provider of cloud-based software for post-acute care providers, including contract therapy companies, skilled nursing facilities, outpatient clinics, home health agencies and hospice organizations.

Patient Engagement

Eliza Corporation/HMS Holding

Seller: Eliza Corporation

Buyer: HMS Holding

Announced: March 2017

Deal Value: $170M

HMS Holding Eliza Corporation

Eliza is a healthcare engagement management solution capable of delivering a truly personalized conversation with the modern healthcare consumer at an enterprise scale. HMS Holdings Corp., through its subsidiaries, provides coordination of benefits, payment integrity and care management solutions for payers. As a result of HMS’s services, customers recover billions of dollars annually and save billions more through the prevention of improper payments.

Health IT Services

HCI Group/Tech Mahindra

Seller: HCI Group

Buyer: Tech Mahindra

Announced: March 2017

EV/S Multiple: .0.8

Seller Revenue: $114.00M

Tech Mahindra HCI Group

The HCI Group is a global leader in healthcare IT consulting with headquarters in Jacksonville, Florida and international headquarters in the United Kingdom. It offers a broad scope of healthcare IT solutions in more than 10 countries in North America, Europe, Middle East and Asia Pacific. Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences. The two companies will be merged into one.

Netgain/Bluff Point Associates

Seller: Netgain

Buyer: Bluff Point Associates

Announced: February 2017

Deal Value: $25M

Bluff Point Associates Netgain

Netgain provides highly specialized services and solutions that simplify the cloud computing environment. Bluff Point Associates is a private equity firm based in Westport, Connecticut. Bluff Point actively invests in information services companies supporting the banking, trust, securities, retirement and wealth management sectors of the financial services industry as well as the healthcare information services sector.  Netgain will retain its location in St. Cloud, Minnesota and most of its founders.