Health Care Deal News, December 22, 2014 – A Record Year for Health Care M&A

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Dear Readers: The next edition of Health Care Deal News will be published on January 12, 2015. We wish you happy holidays and look forward to sending you more news in the new year.

Week ending December 19, 2014:

Recent Health Care M&A Deals

Acquirer

Target

Price

eHealth

Emdeon Inc.

AdminiSource Communications, Inc.

$35 million

Varian Medical Systems

MeVis Medical Solutions AG

$36.8 million

HTC Global Services

CareTech Solutions, Inc.

N/A

GI Partners

Logibec, Inc.

N/A

Hospitals

Trinity Health

Saint Francis Care

Merger

Philips Ups Its Bet on Medical Devices by $1.2 Billion
Philips (NYSE: PHG) put some money behind its decision to go from a consumer electronics and lighting company to one with a major focus on health care. The Dutch corporation agreed to pay $1.2 billion for California-based Volcano Corporation (NASDAQ: VOLC), which develops, makes and markets a suite of catheter-based, precision-guided therapy tools worldwide. The all-cash offer represents $18 per share of Volcano, a premium of 57% to its prior-day closing price, and 3.04x revenue. Its products complement Philips’ own image-guided therapy business, which it’s built in recent years through investments in R&D, partnerships and technology licenses.

The Year That Was
If 2014 started out slowly, the second and third quarters certainly made up for it. Through December 19, we’ve captured 1,208 deals across 13 health care sectors. That’s 17% better than last year, which actually was down a bit (7%) from 2012’s combined total of 1,114 deals. Spending on those deals was, er, quite robust. In the same period, acquirers have committed more than $386 billion, which is up 136% from last year’s total of $163 billion. Here’s how the year looks versus 2013, and we’ll be back in January with an update.

Health Care M&A in 2014* and 2013, by Transactions

Sector

2014 Deals

2013 Deals

Change

Behavioral Health

19

18

6%

Biotechnology

126

84

50%

eHealth

112

68

65%

Home Health & Hospice

58

65

-11%

Hospitals

72

84

-14%

Labs, MRI & Dialysis

32

36

-11%

Long-Term Care

278

225

24%

Managed Care

21

15

40%

Medical Devices

107

103

4%

Pharmaceuticals

185

150

23%

Physician Medical Groups

57

65

-12%

Rehabilitation

19

17

12%

Other Services

122

105

16%

* thru Dec. 19. Source: The Health Care M&A Information Source, December 19, 2014

U.S. HealthWorks Builds Its Orange County Practices
U.S. HealthWorks, a division of not-for-profit Dignity Health, bought three more occupational/urgent care clinics in Orange County, California. The deal for Tustin Irvine Medical Group brings its total locations in OC to eight centers, and a total of 73 centers and worksites throughout California. U.S. HealthWorks runs 222 occupational healthcare and urgent care centers and worksites in 19 states.

Hercules Backs ADMA Biologics
ADMA Biologics, Inc. (NASDAQ: ADMA), a late-stage biopharmaceutical company that develops, manufactures and intends to market specialty plasma-based biologics to treat infectious diseases, received a $5 million tranche from Hercules Technology Growth Capital, Inc. (NYSE: HTGC). The investment was based upon ADMA achieving clinical endpoints of a Phase 3 clinical study of RI-002 as a treatment for primary immunodeficiency disease. ………….Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

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