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Healthcare IT has a great quarter with $220 million in VC funding; M&A transactions come to $4.7 billion
Mercom Capital Group llc, a global communications and consulting firm,
today released healthcare IT funding and merger and acquisition
(M&A) activity for the third quarter of 2011.
Venture Capital (VC) funding in the healthcare IT sector in Q3 2011 more
than tripled with $220 million in 18 deals compared to $66 million in
six deals in the previous quarter. VC funding for the same quarter last
year came to $62 million in seven deals. Fifty-three different
investors participated in these funding rounds.
"It was the best quarter in terms of both VC funding and M&A
activity in the healthcare IT sector since the first quarter of 2010. It
is encouraging to see that a lot of these funding rounds were early
stage deals," commented Raj Prabhu, Managing Partner at Mercom Capital
Group.
Top VC funding rounds included a $75 million raise by ZocDoc, $27
million by Awarepoint , $20.1 million by CareCloud, $20 million by One
Medical Group and $20 million by SeeChange Health.
M&A activity in the healthcare IT sector surged this quarter
amounting to $4.7 billion in 37 transactions compared to $703 million in
Q2 2011.
Major M&A transactions included the acquisition of Emdeon by
Blackstone Capital Partners for $3 billion, Vantage by General Dynamics
for $960 million, Sage Healthcare by Vista Equity Partners for $320
million, PayFlex by Aetna for $202 million and M*Modal by MedQuist
Holdings for $130 million.
By way of technology, health information management companies were
involved in most funding and M&A transactions this quarter.
To download all funding transactions for Q3, visit: http://mercomcapital.com/healthcareitreports.php
UPDATE: VC funding and number of investors updated October 12, 2011.
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