Mergers and Acquisitions

Roch acquires New York, NY-based Flatiron Health  for $1.9B

Flatiron had raised close to $130M with Roch as a recent investor. The company is a vertically integrated HIT vendor for oncology. The solution set covers EMR, billing, analytics, clinical trials and value based care. Over 250 community oncology practices use the solution. The company also has a partnership with National Cancer Institute. Flatiron brings regulatory-grade real-world evidence to Roch; which should play a key role in the company’s drug development projects.

TPG backed Mediware Information System acquires MEDTranDirect based in Nixa, MO

The target provides RCM software and services including payer connection portal, remittance advice and electronic billing. They are also an approved network service vendor for Medicare. TPG bought Mediware last year and since its purchase from Thoma Bravo, the company has made two acquisitions already.

Mediware is a large roll up of diversified healthcare companies. Their software and service offerings range from home health, hospice, blood management, HME, IV and pharmacy to behavioral health and human services sectors.

StayWell acquires Provata of Lake Oswego, OR to bolster employee wellness app offering

Staywell, owned by Merck, offers preventive health platform for employers and health plans. The target makes a digital health platform for employee wellness which includes a chronic disease management program. The program incorporates a connected scale and blood pressure monitor amongst other trackers. We like the VR headset that they offer for their mental health platform.

Verscend Technologies acquires commercial health insurance payer products of General Dynamics  

The target is one of the largest players in fraud, waste, and abuse detection and prevention. Verscent now will have one of the most robust solutions for tracking waste and abuse. Verscend was voted as #1 in KLAS for payor quality analytics. This only strengthens that position.

Arsenal Capital-backed TractManager acquires EMTS, based in Littleton, CO and Newport Credentialing Solutions based in Valley Spring, NY

TractManager is the healthcare industry’s largest supplier of strategic sourcing and contract lifecycle management (CLM) solutions. The target manages capital equipment and service contract negotiations for hospitals and health systems. The combination makes perfect sense to us.

Newport Credentialing Solutions is a leader in cloud-based credentialing and provider enrollment software and services. Clients include largest academic medical centers, health systems, and multi-specialty group practices.

Press Ganey buys patient experience business and engagement business of Healthstream for $65M

PG is certainly a pioneer in performance improvement and has been in the business for 30 years. The company serves over 33K healthcare facilities. Healthstream, in turn, is strong in talent management and compliance with other scattered businesses such as revenue cycle. This divestiture is smart and brings focus to the company.

Allscripts sells document management division of McKesson to Hyland

Allscripts is certainly one of the more acquisitive HIT companies around. Their acquisition of McKesson software assets for $185M was a smart move but they are not in the business of document management. Hyland, backed by Thoma Bravo, is the ideal owner for this asset. This is a win-win for both parties.

Genex of Wayne, PA acquired by Stone Point Capital

Genex Services, is a cost containment company for the workers’ compensation, disability and auto industries. Apax Partners purchased the business  in 2014 and made several acquisitions to further grow the top line. Workers comp is a huge business. Software and services companies that serve that market are in high demand.

Dohmen Life Science Services of Milwaukee, WI is sold to JLL Partners and Water Street Healthcare Partners

Dohmen Life Sciences Services helps biopharma and medical device companies with a variety of services ranging from patient support, supply chain, compliance, finance and technology. Water Street built a commercialization platform via the merger of  Alliance Life Sciences, Health Strategies Group and The Access Group. With the addition of DLSS, the platform will become the leading independent provider of commercialization services to life sciences companies. It will serve more than 300 of the industry’s top pharmaceutical, biotech and medical device companies. Although this sounds like a complicated integration story, we think in this business, scale matters and this was a good deal for Water Street.

HealthCare.com Acquires Pivot Health of Phoenix, AZ

The target provides specialty health insurance products. Founded in 2016, Pivot Health develops, manages policies for individuals, including short-term medical, fixed indemnity and supplemental gap coverage. Healthcare.com is a search and comparison company for health insurance quotes. The company compares 4,000 plans from 70 insurance companies.  Pivot, can materially leverage Healthcare.com’s data and continue to build niche products.

Omnicom Health Group Acquires Snow Companies based in Williamsburg, VA

Omnicom Health is the healthcare division of Omnicom Group, one of the largest advertising companies in the world. The target is a full-service patient engagement agency that focuses on direct-to-patient (DTP) communications, marketing, education, and patient research initiatives for major pharmaceutical and biotech companies around the world. Snow Companies works in over 80 disease states and therapeutic areas. The target was backed by WestView Capital which bought the company only a year ago.

Fitbit buys Twine Health based in Cambridge, MA

Twine Health delivers an engaging and user-friendly experience to help people manage chronic conditions, such as diabetes and hypertension, and aid in lifestyle interventions, such as weight loss and smoking cessation. Fiitbit has been a disappointment since its IPO. The  company has several hundred people in its R&D group who are working on just a handful of products. Fitbit needs to acquire companies in its adjacencies that are purpose-built and Twine fits the bill.

Quest Diagnostics acquires MedXM based in Santa Ana, CA

MedXM is a home-based health risk assessment company. Rapid diagnostics that can be performed in physicians’ offices or even in the home are huge threats to companies like Quest. This acquisition is a smart move to ensure that they can still keep a direct line of communication with the patient and bolster their overall capabilities in extended care.