Health Care M&A Volume and Value Slides in Q3:2018, According to Acquisition Data from HealthCareMandA.com
Health care merger and acquisition activity slowed slightly in the third quarter of 2018. The number of deals announced reached 435, down 8% compared with the previous quarter, but was 13% higher than the same 386 deals announced in the same quarter in 2017, according to acquisition data from HealthCareMandA.com.
NORWALK, Conn., Oct. 31, 2018 /PRNewswire-PRWeb/ -- Health care merger and acquisition activity slowed slightly in the third quarter of 2018. The number of deals announced reached 435, down 8% compared with the previous quarter, but was 13% higher than the same 386 deals announced in the same quarter in 2017. Combined spending in the third quarter totaled $30.4 billion, a low point in the year following three quarters of $100 billion-plus totals. This quarter's spending was 79% lower than the previous quarter ($144.6 billion) and 30% lower than the year-ago third quarter ($43.3 billion), according to HealthCareMandA.com.
Healthcare services transactions represented 63% of the third quarter's total. The Long-Term Care sector once again ranked the highest, with 103 deals and a 24% share of the quarter's transaction total. Year-over-year, growth was strong in Behavioral Health Care (+80%), Home Health & Hospice (+38%) and Long-Term Care (+34%). The services sectors accounted for 52% of the quarter's spending, approximately $15.9 billion.
Healthcare technology deals accounted for 37% of the third quarter's total. The Biotechnology sector was the busiest, posting 56 deals and making up 13% of the quarter's total. Three of the four sectors bested their performance in Q3:17, with Biotechnology deals up 33%, Medical Device deals up 78% and Pharmaceutical deals up 47%. The eHealth sector showed some weakness year-over-year, down 16%. Technology deals accounted for 48% of the quarter's spending, approximately $14.5 billion.
"The third quarter is often slower than the first two, but this year, the third quarter matched the first quarter's total of 437 deals. We think the fourth quarter will be even stronger, given the fluctuations in the equity markets and the anticipated increases in interest rates," said Lisa E. Phillips, editor of HealthCareMandA.com. "The economic climate may worry investors looking abroad, but health care is even more local than politics. We see more money moving into this market."
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SOURCE Irving Levin Associates
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