Report: Volume, Value of Health IT Mergers, Acquisitions on the Rise
July 24, 2014 in News
The overall volume of merger and acquisition activity in the health care and pharmaceutical IT sectors increased by 18% and aggregate deal value increased by almost 50% in the first half of this year compared with the second half of 2013, according to a report by Berkery Noyes, Healthcare IT News reports (McCann, Healthcare IT News, 7/23).
Details of Report
For the report, researchers compared merger and acquisition data from the first half of 2014 in the health care and pharmaceutical IT industries with data from 2012 and 2013. The market includes IT vendors that work with:
- Pharmaceutical companies;
- Health care payers; and
- Health care providers (Berkery Noyes release, 7/17).
According to the report, aggregate deal value increased from $3.73 billion in the second half of 2013 to $5.45 billion in the first half of 2014 in the health care and pharmaceutical IT sectors, marking a 46% increase. In addition, the overall volume of mergers and acquisitions in those sectors increased from 169 transactions in the second half of 2013 to 199 transactions in the first half of 2014. Notable entities in the market included:
- Merck, which completed three transactions in the first half of 2014, making it the most active acquirer in the health IT sector (Berkery Noyes report, 7/17); and
- Dassault Systemes SA, which completed the largest transaction for the health IT market when it paid $652 million to purchase scientific lifecycle management software provider Accelrys Software (Berkery Noyes release, 7/17).
Within the health care IT segment of the market, the volume of mergers and acquisitions increased by 17% — the largest half-year increase for the industry in the past two and a half years (Dvorak, FierceHealthIT, 7/23).
Meanwhile, the volume of mergers and acquisitions also increased in the first half of 2014 in several other health-related sectors, including the:
- Consumer health IT industry; and
- Pharmaceutical IT industry (Berkery Noyes release, 7/17).