Mercom Capital Group www.mercomcapital.com just released their Q4 2016 and Annual Healthcare IT/Digital Health Funding and M&A Report. It was a record year in multiple ways since VC funding eclipsed $5 billion, over 1,000 investors participated in VC funding rounds, and mobile health set a new category high mark with $2.1 billion.
The top five VC funding rounds in 2016 were: Chinese company Ping An Good Doctor with $500 million, Chunyu Yisheng with a $183 million round, Flatrion Health’s $175 million raise, Jawbone’s $165 million, and Meet You with a $151 million round.
A total of 1,115 investors including (accelerators/incubators) participated in VC funding rounds in healthcare IT companies in 2016 as compared to 923 in 2015. The top VC investors in 2016 were Khosla Ventures with seven deals followed by GE Ventures, Social Capital, and BlueCross BlueShield Venture Partners, with six deals each.
Mobile Health apps were involved in most M&A transactions in 2016 with 21, followed by data analytics companies with 19 transactions, practice management solutions with 16, and telemedicine companies with 12.
In the last five years, 206 companies have made multiple acquisitions led by IMS Health with 12, and CompuGroup Medical and iMedX with 10 each. Quality systems with 9, Emdeon and McKesson with 8 each, and athenahealth, GE Healthcare, PracticeMax, and TELUS HEALTH with 7 each.
The top disclosed M&A transactions in 2016 includes:
- $2.75 billion acquisition of MedAssets by Pamplona Capital Management
- $2.6 billion acquisition of Truven Health Analytics by IBM
- $2.35 billion acquisition of Press Ganey Associates by EQT Equity fund EQT VII
- $950 million acquisition of Netsmart Technologies by Allscripts & GI Partners
- $820 million acquisition of Verisk Analytics Healthcare services business from Verisk Health (known today as Verscend) by Veritas Capital
Go to http://store.mercom.mercomcapital.com/product-category/healthcare-it-reports for the report “Q4 2016 and annual Healthcare IT/Digital health Funding and M&A Report.”