PR Web January 19, 2020
Health
care merger and acquisition activity essentially held steady in the fourth
quarter of 2019, compared with the third quarter. The number of deals announced
fell 3%, to 442, compared with the previous quarter's 456 transactions, and was
12% lower than the 504 deals announced in the same quarter in 2018.
Combined
spending in the fourth quarter totaled $63.4 billion, up 22% compared with the
previous quarter's $52.1 billion. It was 47% greater than the approximately
$43.1 billion reported in the same quarter in 2018, according to HealthCareMandA.com
Healthcare
services transactions made up 69% of the fourth quarter's deal volume, similar
to the previous four quarters. The Long-Term Care sector once again ranked the
busiest, with 110 deals and a 25% share of the quarter's transaction total.
Year-over-year, two of the services sectors posted impressive gains--Home
Health & Hospice (+40%) and Managed Care (+200%). Combined spending on the
services side accounted for only 38% of the quarter's total, approximately $24
billion, based on disclosed prices.
Healthcare
technology deals accounted for 31% of the fourth quarter's deal volume. The
eHealth sector was the busiest, posting 63 deals to make up 14% of the
quarter's total. Year-over-year, eHealth was the only technology sector to post
an increase in deal volume, up 9% compared with the fourth quarter of 2018.
Combined spending among the technology sectors was $39.4 billion.
"Fourth-quarter
deal volume was strong, thanks to a busy December," said Lisa E. Phillips,
editor of HealthCareMandA.com.
"Heading into 2020, we expect another strong year in the healthcare
market--at least until the November elections."
As
healthcare mergers and acquisitions go, 2019 was another good year. Preliminary
data show a total of 1,774 deals announced, the second-highest on record. The
total is just 7% lower than 2018's record of 1,908 transactions.
Last
year's spending total is another story, and one for the record books.
Preliminary data show $401.7 billion went to finance healthcare deals in 2019,
and that's just disclosed spending. Not only is that a record, it beat the
previous record ($333.3 billion, set in 2018) by 21%.
All
quarterly results are published in The Health Care M&A, which is part of
the HealthCareMandA.com investment
research source. Sector-specific research and analysis can be found at Levin Associates 2019 Sector Reports. For
information, or to order the report, call 800-248-1668. Irving Levin Associates
is celebrating more than 70 years of delivering exclusive M&A intelligence
to its sophisticated audience of seniors housing and healthcare investors. The
company was established in 1948 and has headquarters in Norwalk, Connecticut.
No comments:
Post a Comment