The first quarter of 2021 has been one of investor optimism as the vaccine rollout continues ahead of expectations and economic activity begins to accelerate in response. Within the Health IT industry, the already strong investment and M&A trends seen in 2020 have only accelerated. Over the course of the quarter, we observed $7 billion in private equity and venture capital investment across 158 companies. By comparison, Q1 of 2020 saw $3.2 billion and 127 investments. Health IT
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Healthcare Private Equity | PE | M&A| News, Analysis, Insights
Life Sciences Firm OrbiMed Raises $3.5B Across Private Investment Funds
What You Should Know: Life sciences investment firm OrbiMed announced $3.5 billion in commitments for its latest private investment funds, including $1.5 billion for OrbiMed Private Investments VIII, $800 million for OrbiMed Asia Partners IV, and $1.2 billion for OrbiMed Royalty & Credit Opportunities III. The three new funds include a broad range of medical institutions, university endowments, foundations, pension funds and sovereign wealth funds. - OrbiMed Private Investments
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Tech-Enabled PBO RxBenefits Reaches $1.1B Valuation After Recapitalization
What You Should Know: - Private equity firm Advent International announced that
it has completed a recapitalization of RxBenefits, the employee benefits
industry’s first and only technology-enabled pharmacy benefits optimizer (PBO). - The transaction values RxBenefits at approximately $1.1
billion. Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has completed a recapitalization of RxBenefits, the
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Healthcare PE Firm Heritage Group Launches $300M Health Tech Fund
What You Should Know: - Healthcare private equity firm Heritage Group launches a $300M fund to invest in high-growth healthcare services and technology companies. - Heritage is backed by some of the leading healthcare organizations in the nation, including large provider systems, payers, and healthcare service providers. Heritage Group, a Nashville, TN-based healthcare-focused private equity firm, today announced the closing of over $300 million in its oversubscribed third fund, an
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2020’s Top 20 Digital Health M&A Deals Totaled $50B
Teladoc Health and Livongo Merge The combination of Teladoc Health and Livongo creates a
global leader in consumer-centered virtual care. The combined company is
positioned to execute quantified opportunities to drive revenue synergies of
$100 million by the end of the second year following the close, reaching $500
million on a run-rate basis by 2025. Price: $18.5B in value based on each share of Livongo
will be exchanged for 0.5920x shares of Teladoc Health plus cash consideration
of
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Israeli Digital Health VC Firm OTV Closes $170M Venture Fund
What You Should Know: - OTV (formerly Olive Tree
Ventures), Israel’s ‘digital health first’ venture capital firm closes $170
million venture fund to support innovative digital health companies worldwide. - OTV also announced today a new China
office and the appointment of Jose Antonio Urrutia Rivas as Head of Asia
Pacific. OTV (formerly Olive Tree Ventures), Israel’s ‘digital health first’ venture capital firm, today announced the closing of a fund with a total value of
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M&A: CarepathRx Acquires Pharmacy Operations of Chartwell from UPMC for $400M
What You Should Know: - CarepathRx will
acquire the University of Pittsburgh Medical Center’s pharmacy operations in a
$400M deal. - The company fully
integrates pharmacy operations, expands healthcare services, improves
ambulatory access, minimizes clinical variation and creates new health system
revenue streams. - CarepathRx serves more than 15 health systems and 600
hospitals, with more than 1,500 employees nationwide, 400 payor contracts.
Already CarepathRx has treated more than
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M&A: Central Logic Acquires Patient Care Transition Platform Ensocare
What You Should Know: - Central Logic has acquired Omaha-based Ensocare, which
automates the referral process for patients from hospital to post-acute care
(PAC) when they are being discharged. - This acquisition means that Central Logic’s technology
solution will now expand its reach across the care continuum, from acute to
post-acute care—into, through and out of the health system. This combined
capability is key to increasing patient satisfaction while also increasing
patient census by
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Tampa General to Launch Healthcare Innovation Venture Fund in Q1 2021
What You Should Know: - Tampa General Hospital announces its plan to launch a new
healthcare innovation venture fund to improve the quality and access to care
across the Tampa/St. Pete metro area in Q1 2021. - Through TGH InnoVentures, Tampa General will partner
with Embarc Collective, Tampa Bay's innovation hub and education nonprofit
dedicated to helping startups grow into scalable, thriving businesses. Today, Tampa General Hospital
President and Chief Executive Officer John
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M&A: Anthem Reportedly in Negotiations to Acquire CareCentrix
What You Should Know: - Health insurer Anthem
is in late-stage negotiations to acquire home healthcare benefits manager CareCentrix, according to PE Hub. - PE Hub reports
that customer concentration issues have been a factor in negotiations; however,
the deal is far from certain. - Backed by growth private equity firm Summit Partners, East Hartford, CT-based
CareCentrix provides specialty benefit management services to health plans,
improving quality and reducing costs in several
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