Health Care M&A Volume Increased in Q3:2021, According to Data from Irving Levin Associates, LLC

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CORRECTED RELEASE: Health care merger and acquisition activity increased in the third quarter of 2021 hitting nearly 600 deals, according to new acquisition data from Irving Levin Associates, LLC.

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“The healthcare M&A market is booming right now, largely driven by private equity activity across a variety of sectors"

Health care merger and acquisition activity increased in the third quarter of 2021 hitting nearly 600 deals, according to new acquisition data from Irving Levin Associates, LLC. There were 597 deals announced in the second quarter, a 3% jump from the second-quarter total of 581 deals. Activity in the second quarter of 2021 was 58% higher than the same quarter in 2020.

Activity in sectors such as Long-Term Care and Physician Medical Groups drove much of the deal closings, with 107 and 96 deals, respectively, but there was a notable 28% jump in activity in the Other Services sector. Demand for specialty pharmacy providers helped drive the increase, along with increased activity in the healthcare real estate market for medical office buildings. Activity in the Home Health & Hospice and Behavioral Health Care sectors remained stable thanks to tailwinds in each market. More and more patients are seeking alternatives to facility-based care, turning toward home health services, and anxiety caused by the effects of the COVID-19 pandemic is causing a surge in individuals seeking mental health treatment and services.

Activity in the technology sectors remained robust, increasing by 13% compared with the second quarter. M&A activity in the eHealth sector dropped by seven deals, but activity remains strong in the market. Although M&A demand for telehealth providers has softened compared with 2020, we’re seeing increased activity for providers specializing in patient analytics and electronic health record services.

Deal value in the third quarter totaled $133.3 billion, an increase of 4% compared with the $128.8 billion spent in the second quarter, based on disclosed prices. The spending in Q3:21 was 18% higher than the $112.9 billion disclosed in the third quarter of 2020. The largest deal of the quarter was another de-SPAC transaction, with MSP Recovery, LLC merging with Lionheart Acquisition Corp. II in a deal valued at $32.6 billion.

“The healthcare M&A market is booming right now, largely driven by private equity activity across a variety of sectors,” said Dylan Sammut, Editor of Health Care at Irving Levin Associates. “We’re seeing the usual interest for physician groups and behavioral health providers, but investors should keep an eye out for deals involving emerging companies, such as specialty pharmacies and chronic care management platforms. Dealmakers tell us that’s the next big wave.”

All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.

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