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Trend Reports

2013 Third Quarter

 
 

2013 l 3rd Qtr l Trends Report l Healthcare Industry

Wednesday, October 16, 2013

Q3 2013 KEY HIGHLIGHTS

  • Vitera Healthcare Solutions' announced acquisition of Greenway Medical Technologies, Inc., a provider of software solutions and services to ambulatory healthcare providers, was the largest transaction in Q3 2013, with an enterprise value of $632 million.
  • Strategic acquirers accounted for 74 percent of deal volume, or 59 out of 80 transactions, in Q3 2013.

Q3 2013 KEY TRENDS

  • Total transaction volume in Q3 2013 increased by seven percent over Q2 2013, from 75 to 80.
  • Total transaction value in Q3 2013 fell by 68 percent over Q2 2013, from $6.3 billion to $2.0 billion. However, value was skewed in Q2 2013 by the acquisition of Springer Science & Business Media for $4.4 billion. Overall value in the 1st 3 Quarters of 2013 declined 13 percent compared to the same timeframe in 2012.

MULTIPLES & VALUE TRENDS

  • The median revenue multiple from 2012 through the 1st 3 Quarters of 2013 remained constant at 2.3x.
  • The median EBITDA multiple from 2012 through the 1st 3 Quarters of 2013 moved slightly, from 9.9x to 9.1x.

TOP TEN DEALS THROUGH Q3 2013

The top ten deals by value have seen three new additions since our half year report, including two in which the ultimate parent was a strategic acquirer: Zotec Partners' acquisition of Medical Management Professionals and Medtronic, Inc.'s acquisition of CardioCom.

These three transactions, with an aggregate value of $1.0 billion, represented nine percent of transaction value in the 1st 3 Quarters of 2013 and 50 percent of Q3 2013 transaction value.



 

Top 10 Deals