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August 19, 2013 Issue:
Recent Health Care M&A Deals
Biotechnology
Acquirer
Target
Price
Arcturus Therapeutics
Marina Biotech
N/A
Hospitals
Acquirer
Target
Price
Medical Properties Trust
3 hospitals
$288.3 million
Laboratories, MRI and Dialysis
Acquirer
Target
Price
Metamark Genetics, Inc.
Healthtronics Laboratory Solutions, Inc.
N/A
BGS Acquisition Corp.
TransnetYX Holding
$80.72 million
Medical Devices
Acquirer
Target
Price
Juniper Investment Company, LLC
Theragenics Corporation
$64.3 million
Services Deal of the Week
It was a quiet week in the Services sector, for once. Long-Term Care was perking along, however, with a few deals announced. One was for Wellbrooke of Avon, a newly built facility in Avon, Indiana, and the third property in the state to carry the Wellbrooke brand name. HealthLease Properties REIT (TSX: HLP.UN) paid $17.2 million for the facility, which houses 70 skilled nursing and rehab beds and 30 assisted living beds. The property was built by Mainstreet Property Group, which is affiliated with HealthLease, and will be leased to an affiliate of Life Care Services. The transaction is part of a pre-existing development agreement between Mainstreet and HealthLease….Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
Charted Territory
It’s Medical Device Monday here. Deal-making in the sector is gaining momentum, and we’ll be focusing on it in the September issue of The Health Care M&A Monthly. The majority of the deals are announced between companies devoted to medical devices, but there have been some – the Medtronic/Cardiocom deal, for example – in which a medical device company makes an acquisition outside the sector, whether to change direction, bolster a product line’s offering or respond to the changes being wrought by the Affordable Care Act. We went into our database to capture the most recent examples of the outside-the-box transactions, shown below. Note: eHealth includes mobile health applications and electronic health records, and Other includes businesses such as pharmacy benefits management and clinical research organizations that are more ancillary to the direct delivery of health care.
What Medical Device Companies Are Buying outside Their Industry, 2013
Acquirer
Target
Target sector
Date
Medtronic, Inc.
Cardiocom
eHealth
8/12/2013
GE Healthcare
Ultrasound repair business
Other
5/29/2013
SafeCode Drug Technologies
Quickool and Easy Jet Technology
Other
3/12/2013
DMH International
Touch Medical Solutions
eHealth
2/27/2013
Baxter International
Rights to hemophilia compound OBI-1
Biotechnology
1/25/2013
Source: Irving Levin Associates, Inc., August 2013
Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today
Technology Deal of the Week
Medtronic, Inc. (NYSE: MDT), self-billed as the world’s largest medical technology company, moved into the eHealth space last week with its $200 million cash deal for Cardiocom, a privately held telehealth company based in Chanhassen, Minnesota. Cardiocom’s home telemonitoring equipment and telehealth services help health professionals intervene early enough to keep patients with conditions related to heart failure, COPD, diabetes, hypertension and obesity out of the hospital. The acquisition is part of Medtronic’s strategy to broaden its product offerings beyond medical devices…Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
In the Pipeline
Never underestimate a human being’s self-obsession. That’s a major driver behind the “quantified self” movement embodied in the mobile health apps and devices that give users a data-filled look at their levels of activity, blood sugar, heart beats, you name it. Nike, Inc.’s (NYSE: NKE) Fuelband has corporate backing, of course, but San Francisco, California-based FitBit is said by many movement enthusiasts to boast the better product(s), including ones that monitor the quality of one’s inactivity—namely, sleep patterns. As evidence of their up-and-coming reputation, FitBit recently raised $43 million, according to an SEC filing noted by VentureBeat. Of the six investors claimed on the filing, four were named: Eric Friendman, CTO and co-founder of the company; Jon Callaghan, managing partner at True Ventures; Brad Feld, managing partner at the Foundry Group; Steve Murray, partner at Softbank Capital….Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
NEW – Health Care Sector Reports – Pre-Order Today!
Getting the inside scoop on the health care market can help you grow your business. One tool that can help you beat the competition is the latest electronic health care M&A data produced by the editors of The Health Care M&A Information Source. Revenue and EBITDA multiples, key market statistics, info on acquirers, sellers, deals, contact information and more are included for each of these sectors: Biotechnology, Home Health Care and Hospice, Hospitals, Not-for-Profit Health Care, eHealth, Medical Devices and Pharmaceuticals. Save $50 off instantly by entering coupon code “50_off” prior to checkout.
Go to http://www.levinassociates.com/sectorreports or call 800-248-1668 to order today!
Upcoming Interactive M&A Webcast:
Skilled Nursing Facilities: Buying, Selling and Valuing
Thursday, September 12th, 2013, 1:00 pm ET
The skilled nursing market is dead, right? Medicare and Medicaid reimbursement uncertainties are keeping buyers out of the market and prices low, right? All wrong. It is time to think again about the skilled nursing sector and the acquisition market. Find out more from our expert panel: Stephen M. Monroe (Moderator), Managing Editor and Partner, Irving Levin Associates, Inc.; Steven Insoft, Senior Vice President and Chief Financial Officer, Aviv REIT; Greg Miller, Chief Development Officer, Kindred Healthcare; and Mike Pardoll, Senior Vice President/Investments, Marcus & Millichap.
Webcast Calendar…Click here to see more
