Healthcare Magazine November 2014 | Page 17

HEALTHCARE IT

IT

MERGERS AND acquisitions in the healthcare industry have consistently been on the rise , and according to a recent report by Berkery Noyes , an independent mid-market investment bank , healthcare mergers and acquisitions ( M & A ) have garnered an aggregate value of $ 5.45 billion .
The report analyzed M & A activity during the first half of the year and compared it with four previous six-month periods from 2012 to 2013 and included information and technology companies that service pharmaceutical , healthcare payer and healthcare provider spaces .
Total deal volume increased 18 percent since the second half of 2013 , with the median revenue multiple decreasing from 2.5x to 2.0x over the past six months . Deal volume in the healthcare IT segment increased by 17 percent , from 65 to 76 transactions , making it the largest increase on a half year basis throughout the past twoand-a-half years , the report stated .
“ In the rapidly changing healthcare information / technology marketplace , both strategic and financial buyers are on the hunt for attractive acquisitions of scale ,” said Tom O ’ Connor , Managing Director at Berkery Noyes ,
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