Business is picking up across the health IT space today in terms of the rampant growth in mergers and acquisitions during the first six months of 2016.
Berkery Noyes, an independent mid-market investment bank, recently published its mid-year acquisitions trend report for the Healthcare/Pharma Information and Technology Industry.
Total deal volume increased 18 percent since second half 2013, the report summary reads.
Aggregate value gained 46 percent, from $3.73 billion to $5.45 billion. The median revenue multiple decreased from 2.5x to 2.0x over the past six months, while the median EBITDA multiple declined from 9.7x to 8.5x.
Deal volume in the Healthcare IT segment improved 17 percent, from 65 to 76 transactions.
All told, the report confirms, this was the segment’s largest increase on a half year basis throughout the past two-and-a-half years.
“In the rapidly changing healthcare information/technology marketplace, both strategic and financial buyers are on the hunt for attractive acquisitions of scale,” says Tom O’Connor, Managing Director at Berkery Noyes. “Companies with good scale, recurring revenue, and high growth rates with a large addressable market opportunity, whether they are long term care information/education/technology providers, revenue cycle management, point-of-care information solutions, or one of many other attractive niches, are in high demand from both private equity and strategic buyers.”