M&A Transactions

eviCore Healthcare of Bluffton, SC is purchased by Express Scripts, the largest PBM,  for $3.6 billion

This is the most exciting deal of the month. eviCore is a spend optimization company catering to managed care organizations, self-insured entities and risk bearing providers. The company covers radiology, oncology, cardiology, lab and other specialties and administers benefits for over 100 million people.

With the future of the PBM sector in doubt, we think this is one smart move. eviCore was backed by General Atlantic.

Welltok buys Tea Leaves Health from Everyday Health for $90 million

Tea leaves, based in Roswell, GA was purchased by Everyday in 2015 for $50 million. Tea Leaves provides a SaaS-based CRM solutions to help providers better engage with patients. Welltok, which has raised over $160 million of capital to date, has a unique approach to combining social, gaming and personalization technologies to engage patients. The company offers its services to payers and health systems. 

Thoma Bravo- backed Imprivata buys GE Caradigm’s Identity and Access Management Business

In the environment of robust stock market, to take a company private is not for the faint hearted. Imprivata, based in Lexington, MA is a security company that was taken private in a $500+ million deal in September of 2016.

The Caradigm transaction is probably the first of many acquisitions to come. After this divestiture, Caradigm has a better chance of making a go at the PHM market.

Halyard Capital sells Practice Insight to an unidentified buyer

PI has been owned by Halyard since 2011. The company is a wholesaler of EDI and EDI related services. Of note a few weeks ago the company entered into an agreement with Alpha II to introduce MIPS Registry Solutions. There is a lot you can do in the new world of reimbursement with PI’s products.

ExlService picks up Health Integrated of Tampa, FL

HI is a provider of care management services to health plans to manage their most vulnerable members. Their solutions range from 100% outsourcing of care to case and utilization management. Exl provides operations management and analytics to the insurance industry. The company has an enterprise value of $2.0 billion with sales of $700 million.

Azalea Health Innovation buys Prognosis Innovation Healthcare based in Houston, TX

Both companies are niche EMR players. The target caters to rural and community hospitals. We are actually surprised that we are not seeing more consolidation amongst the small to mid size EMR vendors. May be this is a start.

Riverside Partners sells Pilgrim Quality Solutions to an unidentified strategic buyer 

Riverside bought the company in 2011. Pilgrim is one of the better players in the compliance management for life science companies.

Vitals buys the online community business of MedHelp (a subsidiary of Aptus owned by Merck), and MedHelp’s mobile platform is in turn sold to another Merck’s subsidiary, StayWell

Vitals is a transparency and engagement company. MedHelp’s community website is one of the largest in the country attracting more than 15 million monthly visitors with tens of thousands of conversations daily around 300 medical conditions. Vitals has nine million doctor reviews. This combination makes a lot of sense to us.

StayWell offers employer-specific solutions related to several medical specialties, and has services within 85 percent of US hospitals and health systems. The acquisition is a good one for Staywell as it brings access to three million users of MedHelps’ various mobile apps.

Medsphere Systems of Carlsbad, CA and Stockell of Chesterfield, MO merge

Medsphere is an EHR vendor and Stockell is an RCM player. This is where the industry has been heading for a long time. We welcome the move.

Medecision buys part of Comvest-backed Axis PointHealth based in Westminster, CO

We understand that the asset purchase includes the platform business of Axis. Medecision is one of the largest PHM solution providers; serving Medicare and Medicaid patients for payers and catering to risk bearing hospitals. After this acquisition, Medecision becomes the largest independent provider of care management platforms and applications supporting over 50 million lives for the nation’s largest 100 health plans. We call this scaling the business. Good for Medecision.

Convey Health Solutions buys Gorman Health Group based in Washington, DC

Convey services the MA and Part D markets. GHG helps over 150 government-sponsored health programs stay compliant and optimize revenue. The company is more of a consulting firm than a software vendor.

Avizia picks up Seattle, WA-based Carena  Both companies are in the business of virtual care and telehealth. Avizia, which has raised $20 million, is backed by prestigious investors such as New York Presbyterian and Northwell. The combined entity now powers 25% of all telehealth programs run by hospitals.

Matrix Medical Network picks up LP Health Services based in Waltham, MA, from Munich American Reassurance Company

Matrix is a provider of in-home, facility and community-based risk adjustment and care management company and it caters to health plans (mostly MA population) and risk bearing providers. LPHS’s solutions are sold to MA and Medicaid health plans focusing on post-acute assessments for hard-to-reach members. The acquisition expands the clinical network of Matrix to 4,000 providers across all 50 states.

WebPT Acquires Strive Labs based in Boston, MA 

Backed by  Battery Ventures,  WebPT, is an EHR and practice management software company for the rehab therapy providers. Strive Labs is a CRM company covering the same sector. This move will undoubtedly make WebPT more entrenched in its addressable market.