Health Care M&A Volume Leveled Out in Q3:2020, According to HealthCareMandA.com

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Health care merger and acquisition activity remained steady in the third quarter of 2020, with 346 transactions, compared with the previous quarter’s 341 announced deals, according to HealthCareMandA.com.

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"Seeing deal volume pick up again in sectors such as Home Health & Hospice, eHealth and Other Services shows there’s still strong interest in the market. "

Health care merger and acquisition activity remained steady in the third quarter of 2020, with 346 announced transactions, compared with the previous quarter’s 341 announced deals. M&A in the third quarter of 2020 was 25% lower than the same quarter in 2019, however.

The services sectors saw an uptick in deal volume, rising 8% to 231 deals compared with the second quarter. Deal activity in several sectors, such as Behavioral HealthCare, Physician Medical Groups and Laboratories, MRI & Dialysis all jumped by double digits compared with the previous quarter. Home Health & Hospice saw a triple-digit increase, up 120% to 22 deals. Hospital transactions declined, dropping 55% compared with Q2:20.

Activity in the technology sectors declined by 10% in the third quarter compared with the previous quarter. The only sector that saw an increase in deal activity was the eHealth sector, rising 14% to 58 deals.

Spending on all healthcare deals skyrocketed in the third quarter, up 765% compared with the second quarter and 113% compared with the same quarter in 2019. Combined spending reached $110.8 billion. The year’s largest deals, including Gilead Sciences, Inc.’s acquisition of Immunomedics for $21 billion, and the $18.5 billion merger of Teladoc Health and Livongo Health, Inc., were all announced in the third quarter.

“The third quarter is usually a quiet time in the healthcare deal making cycle, but with the coronavirus pandemic, it was difficult to anticipate results,” said Lisa E. Phillips, editor of HealthCareMandA.com. “Seeing deal volume pick up again in sectors such as Home Health & Hospice, eHealth and Other Services shows there’s still strong interest in the market.

“The third quarter in 2020 had a hard comparison against the very strong results from the third quarter in 2019, even without Covid-19,” Phillips added. “The fourth quarter has already started off strong for sectors that didn’t fare as well. We expect to see the usual year-end momentum return.”

For more information on the HealthCareMandA.com investment research source, or for a membership in any of Irving Levin Associates’ services, please call 800-248-1668. Irving Levin Associates, Inc., established in 1948, is headquartered in Norwalk, Connecticut and is online at http://www.levinassociates.com. This privately held corporation publishes annual and quarterly research reports, monthly and weekly newsletters, and maintains merger and acquisition databases on the health care and senior housing markets. If you would like to receive future releases, please email pressreleases@levinassociates.com.

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