Global healthcare IT M&A value touches USD 2.92 bn in Q2
The global healthcare IT sector merger and acquisition (M&A) value reached USD 2.92 billion in the second quarter of this year, driven by Piramal Healthcare's acquisition of US-based Decision Resources Group.
July 24, 2012 / 19:43 IST
The global healthcare IT sector merger and acquisition (M&A) value reached USD 2.92 billion in the second quarter of this year, driven by Piramal Healthcare's acquisition of US-based Decision Resources Group.
Indian drug firm Piramal Healthcare's acquisition of US-based Decision Resources, a healthcare information company which provides web-enabled research for USD 635 million was the second largest M&A transaction of the quarter, according to the report by Mercom Capital Group, a global clean energy communications and consulting firm.As many as 39 M&A transactions were announced in the sector in the April-June quarter, out of which only seven transactions disclosed details.Significant number of M&A deals were announced in the healthcare IT sector, providing investors and companies with viable exit strategies, Mercom Capital Group Managing Partner Raj Prabhu said.
"Most mergers and acquisitions were strategic in nature but private equity firms were very active this quarter and were involved in five M&A transactions," Prabhu added.
Top M&A deals in the April-June quarter included Thomson Reuters' HIT business acquired by Veritas Capital for USD 1.25 billion, Decision Resource- Piramal Healthcare deal worth USD 635 million and Extend Health, a private medicare insurance exchange's acquisition by Towers Watson for USD 435 million.
Meanwhile, the global venture capital (VC) funding in the healthcare IT sector reached USD 293 million in the June quarter by way of 28 deals and both the total amount and the number of deals were at their highest levels since 2010.
"The strong uptrend that started in Q2 2011 has continued for four quarters in a row," Prabhu said.
The top VC funding deal this quarter was the USD 100 million raised by Castlight Health, a provider of healthcare web and mobile-based transparency solutions, followed by USD 34 million raised by Practice Fusion and USD 30 million each raised by Valence Health, and Liaison Technologies.
The average VC deal size in the June quarter was USD 10.5 million, the report added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
