- Global M&A dollar value for Q1 2020 totaled $515B, ↓34% compared to Q4 2019. Deal count also dropped ↓19% for the same
time frame. Similarly, North America M&A dollar value was down 43% on QoQ basis.
- Global Private Placements dollar value for Q1 2020 was down 11%, to $104B, compared to Q4 2019. However, North American
Private Placements dollar value increased by 13%, but the deal count was down 15%.
- In North America, the Digital Health M&A deal count and dollar value experienced significant increases with 23% and 222%,
respectively, compared to Q4 2019. Sharp increase in the dollar volume in Q1 is largely due to Veritas Capital Fund Management’s
announced acquisition of U.S. State and Local HHS Business of DXC Technology Company for $5 billion.
- Productivity Solutions sector was the most active in terms of deal count, accounting for 36% of M&A deals, followed by Patient Centric sector which grew significantly over Q4 2019. Spending and Revenue Analytics, Provider Centric and Clinical Data Analytics increased, accounting for 20%, 13% and 11%, respectively
- Of note, Thoma Bravo announced on Feb 7, 2020 the potential sale of its portfolio company, Imprivata, for an estimated $2 bil but the sale was called off on Mar 23rd due to the impact of COVID-19 shock to the markets
- Private Placement transactions in the N. American Digital Health sector decreased in Q1 2020 ↓8%, but total announced deal $
volume ↑75% QoQ. Of note, larger Private Placement transactions including ScriptDash ($250 Mil) and Concerto HealthAi Solution
($150 Mil.) drove the sharp dollar volume increase in Q1.
- Productivity Solutions sector was the most popular in terms of deal count followed by Patient Centric sector. Spending and Revenue Analytics was the fastest growing segment while Provider Centric saw the biggest decline,
- There were no Digital Health IPO’s in Q1 2020.
- However, Accolade, Inc filed an SEC From S-1 on Feb 28, 2020 and as of March 31 the registration was still active
- As of LTM Q1 2020, Novahill’s Digital Health Public Comparable Index was essentially flat at a nominal 1% increase while the S&P 500 Index underperformed ↓9%
- Both indexes dropped precipitously during Q1 as the COVID-19 risk became visible to the markets, declining by about 40% from their peak prices of mid Feb to their lows of mid Mar and then some recovery in the last weeks of the quarter.