Healthcare Deal Value Soars in Second Quarter

Modern Healthcare releases quarterly trending and analysis of U.S. mergers and acquisitions activity among providers, payers, vendors and pharma/life sciences sectors

For Immediate Release

Contact: Julie Weissman, Research Director 312-649-5459

CHICAGO, Sept. 5, 2012 – The value of U.S. healthcare mergers and acquisitions deal value soared in the second quarter of 2012 despite a fall in deal count. A total of 321 deals worth $50.6 billion were registered during the quarter. Big deals in terms of value were spotted as the quarter witnessed 10 M&A deals of more than $1 billion constituting 73.5% of the total disclosed value. These findings are part of the Healthcare M&A Watch report published by Modern Healthcare.

Vendor M&A activity dominated the total healthcare market with 201 deals worth $14.2 billion in the second quarter driven by growth across all sub-segments. Robust deal making in the healthcare information systems segment captured about 44% of the total private equity and venture capital funding in terms of value in the healthcare market in Q2 2012. Impending impact of the medical devices tax (to be implemented in 2013) will continue to drive deal restructuring and M&As in the healthcare equipment market.

"Given the torrid pace of deal making in the first quarter, we're not surprised the industry caught its breath in the second," said David Burda, editor of Modern Healthcare. "Also, no one knew the outcome of the U.S. Supreme Court's decision on health reform at that time. Now, with the law largely upheld and the need for industry players to integrate, we fully expect the pace to pick up again in the third quarter. The number of deals we've been reporting on support that expectation."

Learn more about the Healthcare M&A Watch report, or about any of Modern Healthcare's data products.

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