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* Mercom revised its Q2 2012 VC funding total to $378 million in 36
deals compared to $293 million in 28 deals as previously published.
Strong M&A activity also reported by Mercom Capital
Group
Mercom Capital Group, llc, a global communications and
consulting
firm, today released its report on funding and merger and
acquisition (M&A)
activity for the Healthcare
IT (HIT)
sector for the second quarter of 2012.
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Venture Capital
(VC) funding in the HIT sector continued to scale new heights reaching $293 million in Q2
2012 in 28 deals. Both the total amount and the number of deals were at
their highest levels since 2010.
“The strong uptrend that
started in Q2 2011 has continued for four quarters in a row,” said Raj Prabhu,
Managing Partner at Mercom Capital Group. “Also significant is the continued
strong M&A activity in the sector, providing investors and companies with viable
exit strategies.”
Sixty-one different investors
participated in these funding rounds with Founders Fund, and Venrock
participating in multiple deals.
In Q2 2012,
Health Information
Management (HIM) companies received the most funding as a technology group
with $247 million in 19 deals followed by Telemedicine companies with $19 million in five deals and Personal Health Record companies with $16 million in four deals.
The top VC funding deal
this quarter was the $100 million raised by Castlight Health,
a provider of healthcare web and mobile-based transparency solutions that
enable comparisons of doctors, hospitals, medical procedures based on price and
quality, followed by $34 million raised by Practice Fusion a provider of free web-based EMR and $30 million each
raised by Valence Health,
a provider of clinical integration, data collection and analysis software and Liaison
Technologies, a provider of cloud-based
integration and data management solutions. Other top deals were $14 million
each raised by Carena, a provider of healthcare services 24 hours a day via
phone, secure video, and the traditional house calls and Aware Point
Corporation, a provider of real-time location system (RTLS) solutions for
healthcare. The average VC deal size in Q2 was $10.5 million.
There were 39 M&A
transactions in Q2 2012 amounting to $2.9 billion, of which only seven
transactions disclosed details. Top M&A transactions included Thomson Reuters’
HIT business acquired by Veritas Capital
for $1.25 billion, Decision Resource Group,
a health information company acquired by Piramal Healthcare
Limited for $635 million and Extend Health,
a private
medicare insurance exchangeacquired by Towers Watson
for $435 million.
In Q2 2012, HIM companies accounted
for 17 M&A transactions followed by 11 transactions for revenue cycle
management companies.
“Most mergers and
acquisitions were strategic in nature but private equity firms were very active
this quarter and were involved in five M&A transactions,” said
Prabhu.
For a complete list of Q2
2012 transactions in the Healthcare IT sector, visit: http://www.mercomcapital.com/healthcareITreports.php
About
Mercom Capital Group
Mercom Capital Group, llc,
is a global communications and consulting firm focused on healthcare
information technology (HIT), cleantech and financial communications. Mercom
delivers highly respected industry market intelligence reports covering
Healthcare IT, Solar Energy, Wind Energy and Smart Grid. Our reports provide timely industry
happenings and ahead-of-the-curve analysis specifically for C-level decision
making. Mercom’s consulting division
advises companies on new market entry, custom market intelligence and overall
strategic decision-making. Mercom’s
communications division helps companies and financial institutions build powerful
relationships with media, analysts, government decision-makers, local
communities and strategic partners. For
more information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a
copy of Mercom’s popular market intelligence reports, visit: http://mercomcapital.com/market_intelligence.php
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