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Trend Reports

2013 Full Year

 
 

2013 l Full Year l Trends Report l Healthcare Industry

Monday, January 27, 2014

2013 Key Highlights

  • The largest deal in the Healthcare IT segment was Experian plc's acquisition of Passport Health Communications, Inc. for $850 million in the revenue cycle management subsector.
  • There were 82 financially sponsored transactions in 2013, representing 25 percent of the total volume.

2013 Key Trends

  • Total transaction volume in 2013 decreased by 16 percent over 2012, from 387 to 324. However, when compared to 2011, volume in 2013 saw a three percent uptick.
  • Total transaction value in 2013 rose by two percent over 2012, from $11.63 billion to $11.81 billion. BC Partners' acquisition of Springer Science & Business Media for $4.42 billion accounted for more than one-third of the industry's aggregate value in 2013.
  • The median revenue multiple moved slightly from 2.3x in 2012 to 2.5x in 2013. The median EBITDA multiple improved from 9.9x in 2012 to 10.7x in 2013.
  • The segment with the largest rise in volume in 2013 over 2012 was Pharma IT with a 45 percent increase, from 22 to 32 transactions.

M&A Market Overview

Berkery Noyes tracked 1,027 Healthcare/Pharma Information and Technology transactions between 2011 and 2013, of which 248 disclosed financial terms, and calculated the aggregate value to be $27.85 billion. Based on known transaction values, we project values of 779 undisclosed transactions to be $6.04 billion, totaling $33.88 billion worth of transactions tracked over the past three years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 2.0x revenue and 10.0x EBITDA.

The most active acquirer by volume, either directly or through an affiliated business between 2011 and 2013, was TPG Capital with 15 transactions. Eight of these deals occurred in 2013.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment