NEW CANAAN, CT – OCTOBER 15, 2020 – eHealth merger and acquisition activity increased significantly in the third quarter of 2020, according to new acquisition data from HealthCareMandA.com. There were 58 transactions were reported in the third quarter, a 17% increase compared with the previous quarter’s 51 deals. Deal volume was up a modest 2% compared with Q3:19, when 57 transactions were announced. Twenty-seven deals disclosed a price in the third quarter, totaling $20.8 billion, which eclipses the $606 million in announced spending for the second quarter. In Q3:19, the sector posted $9.56 billion in disclosed spending.
“The Covid-19 epidemic hasn’t fazed investors in digital health companies,” said Lisa E. Phillips, editor of the Health Care M&A Report, which publishes the data. “In fact, changes made to delivering health care since March have boosted interest in areas such as telehealth and remote patient monitoring.”
The largest deal in the sector was Teladoc Health, Inc.’s merger with Livongo Health, Inc. valued at $18.5 billion, creating a global leader in consumer-centered virtual care. Livongo, a leading Applied Health Signals company, uses its AI+AI engine and a team of data scientists to aggregate and interpret substantial amounts of health data and information to create actionable, personalized and timely health signals for its members.
Other notable deals include Warburg Pincus’ sale of Specialists On Call, Inc. (dba SOC Telemed) for $7.2 billion to Healthcare Merger Corp., a public investment vehicle, and the acquisition of DXC Technology’s healthcare software provider business for $5.25 billion by Dedalus Group, a portfolio company of the European-based private equity firm Ardian.
All quarterly results are published in The Health Care M&A Report, which is part of the HealthCareMandA.com investment research source. For sector-specific research and analysis, please see The 2020 Health Care Services Acquisition Report. For more information, or to order the reports, call 800-248-1668. Irving Levin Associates, Inc. was established in 1948 and has headquarters in New Canaan, Connecticut. The company publishes research reports and newsletters and maintains databases on the health care and senior housing M&A markets.