Health IT M&A Extremely "Active" in 2013 | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Health IT M&A Extremely "Active" in 2013

July 23, 2013
by Rajiv Leventhal
| Reprints

For the first half of 2013, health information technology was the most active market segment of the healthcare/pharma IT industry for mergers and acquisitions, according to a report from New York-based investment bank Berkery Noyes.

Health IT accounted for 63 transactions, 40 percent of the industry's aggregate volume in the first six months of the year. Moreover, acquirers are showing strong interest in companies that facilitate healthcare information sharing and interoperability, the report said. Allscript's acquisition of medical software provider dbMotion for $188 million was one such example in first half 2013.

According to Berkery Noyes' research, deal volume decreased 16 percent since second half 2012. However, the number of deals was close to the industry's historical average for 2011 when examined on a half year basis. Transaction value increased 58 percent, from $5.08 billion in second half 2012 to $8.03billion in first half 2013. This rise was largely attributable to BC Partners' announced acquisition of Springer Science & Business Media, a scientific, technical, and medical (STM) publisher, for $4.42 billion.

As for other notable deals in the report, athenahealth acquired Epocrates, a provider of point-of-care medical software applications, for $214 million. This was the highest value mobile-based healthcare deal throughout the past two-and-a half years.

"The breadth of acquirers for HIT companies continues to expand as buyers look to capitalize on the size, rapidly evolving dynamics and growth characteristics of the healthcare market," Jonathan Krieger, managing director at Berkery Noyes, said in a statement. "Acquirers are aggressively looking to broaden product suites, leverage distribution channels, and realize revenue and cost synergies."

Topics

News

NewYork-Presbyterian, Walgreens Partner on Telemedicine Initiative

NewYork-Presbyterian and Walgreens are collaborating to bring expanded access to NewYork-Presbyterian’s healthcare through new telemedicine services, the two organizations announced this week.

ONC Releases Patient Demographic Data Quality Framework

The Office of the National Coordinator for Health IT (ONC) developed a framework to help health systems, large practices, health information exchanges and payers to improve their patient demographic data quality.

AMIA, Pew Urge Congress to Ensure ONC has Funding to Implement Cures Provisions

The Pew Charitable Trusts and the American Medical Informatics Association (AMIA) have sent a letter to congressional appropriators urging them to ensure that ONC has adequate funding to implement certain 21st Century Cures Act provisions.

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.