The Health Care M&A Monthly: Second Quarter M&A Results--

Health Care Industry Posts 243 Deals Worth $73.7 Billion

 
The health care merger and acquisition market posted strong results for the second quarter of 2011, recording increases in both deal and dollar volume as compared with the previous and the year-ago quarters. Based on preliminary results, the three months from April through June saw the announcement of 243 deals worth a combined total of $73.7 billion.

The second quarter’s deal volume marks a 6% advance over the 229 deals in the previous quarter, Q1:11, as well as a 3% advance over the 233 deals in the year-ago quarter, Q2:10. These 243 deals are distributed over all 13 sectors of the health care industry. But taken together, the top three sectors account for 44% of the quarter’s deal making: Long-Term Care with 38 deals, Medical Devices with 36 and, tied for third place, Hospitals and Pharmaceuticals with 32 deals apiece. Thus, companies focused on health care facilities, devices and drugs contributed the most to M&A activity.

With 139 deals, the health care services segment accounted for 57% of all deals in Q2:11 while the 104 deals in the corresponding health care technology segment accounted for the remaining 43%.

Based on prices revealed so far, a total of $73.7 billion was committed to fund the second quarter’s M&A activity. This figure represents a 44% increase over the $51.1 billion spent in Q1:11 and a 61% increase over the $45.7 billion spent in Q2:10. Medical Devices led the field with $33.2 billion (45%) followed by Pharmaceuticals with $27.4 billion (37%). At the other end of the spectrum, five services sectors, Behavioral Health Care, Home Health Care, Laboratory, Physician Medical Groups and Rehabilitation, had to be aggregated due to their individually negligible results. Altogether, these five accounted for just 0.9% of all M&A health care dollars spent during the quarter...Want to read more? Click here for a free trial to The Health Care M&A Monthly and download the current issue today