Despite recent turmoil in the financial markets, it looks like health IT transactions have had a surprisingly healthy few months. During the first quarter of 2008, 57 HIT deals were announced, equal to the number of deals announced in Q1 '07, according to a study by Healthcare Growth Partners. Not only did deal flow keep pace, valuations of companies involved actually grew. The media revenue multiple in such deals made a big jump in Q1 '08, hitting 2.1x, as compared with 1.4x during the same quarter last year. Meanwhile, the median EBITDA multiple climbed too, rising to 14.2x compared with 13.4x for 2007. More than half of the deals were for less than $50 million, though a few--such as the Misys/Allscripts combination--were valued at over $100 million.
For more data from the report:
- read this report [1]Â (.pdf)
Related Articles:
Healthcare M&A likely to keep pace in '08 [2]
Angel investors like health IT [3]
New investment venture targets cost-cutting health IT [4]
Links:
[1] http://www.healthcaregrowth.com/Attachments/HCITTransaction_Q12008.pdf
[2] http://www.fiercehealthcare.com/story/healthcare-m-likely-keep-pace-08/2008-02-06?utm_medium=nl&utm_source=internal
[3] http://www.fiercehealthit.com/story/angel-investors-like-health-it/2007-03-26?utm_medium=nl&utm_source=internal
[4] http://www.fiercehealthit.com/story/new-venture-targets-cost-cutting-health-it/2007-06-11?utm_medium=nl&utm_source=internal