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Week ending January 9, 2015:
Recent Health Care M&A Deals
Acquirer
Target
Price
Hospitals
Center Management Group, LLC
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
Center Management Group, LLC
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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Center Management Group, LLC
