M&A Transactions
May 2017 Financial Technology, Data, and Analytics
ZirMed, based in Louisville, KY on the block exploring a dual track process
ZrMed is the only independent large RCM player left in the market. Both Passport and Navicure have already been sold. Valuation talks are around $1.0 billion on EBITDA of $45 million. Our bet is that this will be a sale and not an IPO.
CD&R and Hillhouse CareCapital snap up Carestream Dental based in Rochester, NY
CareStream Dental provides a complete array of services to the dental community including equipment, imaging systems and practice management. The company has a global footprint and has been around for over 100 years. CD&R has the Midas touch when it comes to global distribution businesses.
ArroHealh of Hauppauge, NY is picked up by CIOX Health
The target has been around since 1991 and offers sophisticated services for chart retrieval and risk adjustment services for health plans and providers. It offers HEDIS solutions to Medicare Advantage, Medicaid and commercial insurers. Two way exchange of EMR information is a big business. Payers are willing to pay top $$ to get access to their members’ clinical information. ArroHealth is a solid player in this area. The combination is marriage made in heaven. CIOX is in the release of record business.
HIMSS buys Health 2.0 conferences
HIMSS is an established and reputable institution in the HIT world. Health 2.0 is best known for showcasing the next generation companies and technologies through their conferences and seminars. Two great firms joining hands in educating us about our industry is a good thing.
Entrada Health of Brentwood, TN is picked up by NextGen Healthcare Information for $34 million
Entrada is a clinical documentation and collaboration software tool. QSII, the parent company of NexGen offers comprehensive EMR/practice management and RCM services This acquisition is a good round up of their capabilities.
WRB Communication of Chantilly, VA is picked up by Envoy Health for $30 million
WRB is a multi-channel contact center company for healthcare manufacturers and service organization including remote patient monitoring companies. Envoy Health provides pharmacy management services for hospitals, payers and pharma manufacturers. Envoy’s parent company, Diplomat Pharmacy, is a public company operating independent specialty pharmacies.
Omnicell picks up InPharmics of Madison, MS
Omnicell, a public company with enterprise value of $1.6 billion, is a medication and pharmacy automation company. InPharmics, which is in the same business, has a special focus on acute care hospital pharmacies. A good combination for both companies.
Patient Accounts Services and the Sirrus Group merge to become Acclara Solutions
The combined company will provide patient financial responsibility payment services processing 7 million accounts per year, insurance reimbursement and conversion assistance. We welcome more consolidation in the RCM space.
Docutap buys Lightshed Healthcare based in Atlanta, GA
Lightshed, founded in 2013, is an online self-scheduling software company with rich functionality and features such as broadcasting wait times and queue order. This makes a lot of sense for DocuTap, a comprehensive EMR solution provider for the urgent care and on-demand primary care clinics.
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