MARKET ANALYSIS

Healthcare M&A Weekly 3.18.24

A Look at Recent Transactions Shaping the Future of Healthcare

This week's article provides a summary of recent healthcare M&A news for March 18, 2024. 

The healthcare industry is rapidly evolving, with the lines between the healthcare technology and services sectors blurring - creating the catalyst for innovation, transformation, and continued market activity. TripleTree's Healthcare M&A Weekly summarizes recent mergers, acquisitions, and investments shaping the future of healthcare.

To view previous healthcare M&A activity, please review last week's post: Healthcare M&A Weekly - March 11, 2024.

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• Access, an integrated information management services provider, announced it has acquired Triyam, a software business that provides data management solutions to healthcare organizations. Through this acquisition, Access accelerates its entry into the electronic health records (EHR) and archival digital records management markets, which are aligned with its archiving and compliance management capabilities. Read more about the acquisition here.

 

• Anatomy IT, a healthcare IT and cybersecurity solutions platform and portfolio company of Atlantic Street Capital, announced the acquisition of Manta HealthTech, a healthcare-focused managed IT services firm, to expand its footprint in healthcare sub verticals, including dental and optometry. View the press release here.

 

• CodaMetrix, an artificial intelligence (AI) solution for healthcare and revenue cycle management, announced that it has closed its $40M Series B funding round. Transformation Capital led the financing with the continued support from existing  investors SignalFire, Series A lead, and Frist Cressey Ventures. The financing will be used to further advance CodaMetrix’s AI powered solutions. Click here to learn more.

 

• DirectMed Imaging, a supplier of aftermarket medical imaging parts, systems, and training, announced the acquisition of Houston-based Titanium Medical Imaging, a company with expertise in Canon / Toshiba medical parts and systems. The transaction allows DirectMed Imaging to offer access to inventory across all four major original equipment manufacturers (OEM). Learn more about the acquisition here.

 

• Fortrea, a contract research organization (CRO), announced it has signed a definitive agreement to divest assets relating to its Enabling Services segment, namely its Endpoint Clinical and Fortrea Patient Access business, to Arsenal Capital Partners. The remaining business of Fortrea will strengthen its focus on clinical development phases 1 through 4. Read the announcement here.

 

• Frazier Healthcare Partners, a Seattle-based, healthcare-focused investment firm, announced that it has completed its acquisition of RevSpring, a provider of end-to-end communication and payment solutions servicing healthcare and financial services companies. Frazier is joined in the transactions by NEA, 22C Capital, and RevSpring’s senior leadership team. TripleTree served as a financial advisor to RevSpring for this transaction. Read more about the acquisition here.

 

• Health Technologies (d.b.a DiningRD), a provider of post-acute and senior care consulting dietician services and foodservice software has acquired Kind Dining, who offers hospitality training to senior care providers. Learn more about the acquisition here.

 

• IFM Therapeutics (IFM), a privately held biopharmaceutical company focused on developing therapies that modulate novel targets in the innate immune system, announced that Novartis has exercised its option to acquire all of the outstanding capital stock of IFM Due, a subsidiary company of IFM that focuses on developing small molecules that inhibit the cGAS-STING pathway. Under the terms of the option exercise, IFM received $90M in upfront payment and will be eligible for up to $745M in milestone payments, adding up to $835M in total consideration. View the press release here.

 

• Innovaccer has announced the acquisition of Pharmacy Quality Solutions, a provider of Pharmacy-Payer performance technology. The move reinforces Innovaccer’s commitment to accelerating value-based care across the healthcare ecosystem and to have the largest distribution of providers and pharmacy network combined. Click here to learn more.

 

• Kayne Anderson Growth Capital has acquired a majority share of TeleMed2U, a provider of telemedicine solutions. TeleMed2U plans to use the investment to enhance its telemedicine platform, broaden its network of healthcare providers, and scale its operations to meet the needs of patients and healthcare providers. Learn more about the transaction here.

 

• Linden Capital Partners, a Chicago-based private equity firm focused exclusively on the healthcare industry, announced the acquisition of Alcresta Therapeutics, a producer of novel enzyme-based products for gastrointestinal disorders and rare diseases. HealthQuest Capital, a prior investor, subsequently re-invested in Alcresta and will continue as a minority shareholder and board member. Click here to learn more.

 

• Linus Health, a digital health company enabling early detection of Alzheimer’s and other dementias, announced it has acquired Aural Analytics, a provider of clinical-grade speech analytics. The deal includes Aural Analytics’ assets, including its technology and intellectual property. Read more about the acquisition here.

 

• Myonex, a global clinical trial supply firm, has agreed to acquire the Clinical Packaging & Distribution and Commercial Packaging business and bioservices of Creapharm. Learn more about the acquisition here.

 

• ​Siolita Therapeutics, a clinical-stage biotech company, has announced the completion of a $12M Series C financing round. The round was co-led by Symbiosis and Khosla Ventures. The funds raised in this round will support the further clinical development of Siolta’s lead product, STMC-103H, a defined-consortia Live Biotherapeutic Product (LBP) focused on preventing the onset of atopic diseases in newborns. Learn more about the financing here.  

 

• Uplift, a technology-driven behavioral health company delivering in-network therapy and psychiatry, announced that it has acquired TAO Connect, a therapy-assisted mental health solution with digital tools and resources designed for higher education institutions. Read more about the acquisition here.

 

• Vitas Healthcare Corporation, a wholly-owned subsidiary of Chemed Corporation (NYSE: CHE), announced it entered into an agreement yesterday to acquire all hospice operations and an assisted living facility from Covenant Health and Community Services, for an aggregate purchase price of $85M. Click here to learn more.

 

• Zephyr AI, a healthcare technology company that develops Artificial Intelligence solutions to democratize precision medicine, announced it has successfully closed a $111M Series A funding round with participation from Revolution Growth, Eli Lilly & Company, Jeff Skoll, and EPIQ Capital Group, among others. The new funds will enable Zephyr AI to further enhance its analytical speed and fortify its collection of training and validation data sets as well as support the expansion of the company’s scientific and commercial teams. View the announcement here.

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Transactions outlined in this summary highlight some of the key trends shaping the future of healthcare. Get the latest industry news from TripleTree every week.

This is a partial list of transaction activity across the healthcare industry and is not intended to be a complete listing. Transaction information was identified from various sources and TripleTree may or may not have acted as the financial advisor for the transactions listed. All product names, logos and brands are property of their respective owners. All company, product and service names used in this communication are for identification purposes only. Use of these names, logos and brands does not imply endorsement.