M&A Transactions

Bain Capital-backed Navicure acquires Sequoia-backed ZirMed of Louisville, KY

When you join a PE firm like Bain Capital, most often than not, you do not sit still. A little more than a year after the acquisition of Navicure, Bain got to work and bought the larger player- ZirMed. The combination forms one of the largest independent RCM software players in the industry covering both hospitals and physician groups. Together the companies will cover 400,000 providers. Passport, which traded in 2013 and sold to Experian, was the last large deal in the sector. Some of the noteworthy names that are still independent include Zotec, Availity, ABILITY and eSolutions. Some will be hunters and others will be prey.  

Anthem purchases Healthsun Health Plans from Summit Partners and other backers

The target based in Coconut Grove, FL is a Medicare Managed Care company covering customers in Miami  and Broward counties through a network of doctors and specialists. Healthsun has 40,000 members and owns 19 care centers. CMS gave the company a 4.5 Star Rating for its superior care coordination. Anthem and its affiliates have over 74 million people under their plans.

Fidelity National Financial purchases T- Systems of Dallas, TX for $200 million

T-Systems is a documentation and coding software company serving emergency departments. Over 40% of ER departments use the company’s solutions. The acquisition of an HIT company by a financial institution is a bit of a head scratcher for us.

Tabula Rasa acquires SinofoniaRx for $130 million to improve medication safety

The target has $27 million in revenue and is a provider of Medication Therapy Management (MTM) technology for Medicare, Medicaid and commercial health plans. SinofoniaRx covers 50 million patients. Their MTM solutions include Part D, Star improvement and community pharmacy performance programs. Judging from the performance of Tabula Rasa’s stock price, it appears that the market likes this deal.

Centene buys Fidelis Care a catholic healthcare insurer based in New York for $3.75 billion

The transaction gives Centene its first presence in New York and will beef up its Medicaid, MA and ACA exchange businesses. Unlike other insurers, Centene is actually beefing up on its ACA marketplace capabilities. The company bought Health Net in 2016 which was one of the largest players in the sector. Centene has done a good job covering low income population.

Livongo acquires Diabeto

On the heels of its $52 million capital raise in March, the company is already active in M&A. Livongo is a digital therapeutic company for diabetes management. Diabeto helps patients keep their existing glucose meter and can capture data from a variety of devices.

Amazing Charts of North Kingstown, RI is sold to N. Harris Computer Corporation

Amazing Charts is an EMR/billing company serving the solo and small practices. Close to 4,000 medical practices employing 20,000 clinicians use Amazing Charts. N Harris is an active acquirer of healthcare IT assets. The company purchased iMDsoft, another EMR vendor, back in November of 2016.

Francisco Partners-backed Therapeutic Research Center based in Stockton, CA is purchased by Levine Leichman Capital Partners

The company provides medication learning solution for providers, pharmacists and nurses in order to reduce medication errors and improve care. The buyer is a mid-market PE firm based in Beverly Hills, CA. 

Levine Leichman Capital Partners buys CapsaHealthcare, its second healthcare related acquisition in one month

The company is a leading manufacturer of point of care workstations, medication management and pharmacy automation systems. Capsa services 3,000 health systems.  

Viverae picks up SimplyWell based in Omaha, NE

Both companies are in the employer wellness market but with different approaches and capabilities. The corporate wellness market will continue to struggle. We expect the pace of consolidation to quicken in this sector. For most players, engagement stats are simply not there.

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