– Healthcare Growth Partners (HGP) releases its Semi-Annual Health IT Market Review report that summarizes M&A and private equity activity across health IT, digital health, etc.
– The report reveals health IT as a healthy sector going into 2020 and outlines key 2019 trends and 2020 indicators to watch in the market this year.
Healthcare Growth Partners, an investment bank and strategic advisory firm for health IT has announced the release of its annual Semi-Annual Health IT Market Review report. The research report summarizes M&A and private equity activity across health IT, health information services, and digital health including an overview of trends seen in 2019 including IPOs, regulatory tailwinds, prolific investor appetite, and a rich cross-section of acquirors.
2019’s Banner Year in Review & Trends
The report reveals 2019 as a banner year for the health IT market driven by IPOs, regulatory tailwinds, prolific investor appetite, and a rich cross-section of acquirors. HGP outline five key health IT trends in 2019 along with 2020 indicators:
Other key findings of the report include:
– In 2019, Healthcare Growth Partners monitored 397 health IT and related services M&A transactions, compared to 363 transactions in 2018. In terms of aggregate deal dollar value, HGP observed $44.4B of total transaction value so far in 2019, a value that easily exceeded the $38.2B of total transaction value reported in 2018.
– 2019 saw an acceleration in the pace of M&A activity in the Health IT sector with a total of 397 deals, exceeding the high watermark set in 2017 of 371. Total reported deal value exceeded $44B across reported transactions, noting that the majority of M&A deal valuations are not disclosed publicly.
– HIT Software valuations experience a nice inflection above $30M in value, which steadily climbs until approximately the $1B valuation mark.
– There were 794 capital raise transactions amounting to $15.9B in value, falling just slightly below 2018’s $16.4B and 798 transactions.
– The CRO, Health IT, Healthcare Services, and HIT & Payer Services Indices performed closely to the S&P 500, with CRO and Healthcare Services outperforming the S&P 500. The Payer and PBM Indices experienced a year of volatility due to a series of regulatory moves surrounding drug pricing.
– 2019 saw the best annual return the market has seen since 2013. Despite 2018’s drastic sell-off ending and worries about the U.S.-China trade war, yield curve inversion, and global economic slowdown, positive contributors like lower interest rates, easing of trade tensions, and booming technology helped the markets prosper.
For more information about this report, click here.