Noteworthy M&A Transactions – July 2017

AUG 14
In response to positive feedback about our quarterly M&A Roundup blogs, we have decided to start sharing periodic updates about interesting M&A transactions across the healthcare industry. In our first edition, we review transactions from July 2017 which highlight a few key themes we’ve been seeing in the market recently:
  1. Behavioral health can’t be stopped. The behavioral health market has recently seen aggressive consolidation. Existing behavioral health companies are shifting their focus to addressing the entire market (i.e. mental health, autism and developmental disabilities, substance abuse and related disorders, etc.) as opposed to fixating on one specific niche.
  2. EHR is looking outside the box. Now that the government subsidies supporting the wide deployment of EHRs have dried up and many providers have successfully completed their system integrations, providers are looking to their current EHR vendors for continued support, causing those vendors to dust off or create their inorganic growth roadmaps to quickly and synergistically enhance their existing platforms.
  3. Patient engagement might just be the answer to the age old adage: you don’t know what you don’t know. In an effort to get a better handle on consumer needs, wants, thoughts, and feedback, payers and providers across the continuum are looking to patient engagement platforms to end the cycle of uncertainty when it comes to patient care and providing the best care at the lowest cost.  

Transactions that caught our eye in the month of July:
  • The Center for Professional Excellence, a leading provider of addiction treatment services has announced that they have been acquired by JourneyPure, a provider of behavioral health treatment services that focus on co-occurring mental illness and substance abuse disorders. The Center has helped thousands of professionals with addiction and other behavioral health related struggles with their signature 12-step treatment program. JourneyPure plans to add The Center’s services to its already full continuum of addiction treatment offerings, which include inpatient facilities, sober living homes, outpatient clinics and proprietary coaching services and technologies. The financial terms of the deal were not disclosed.
  • Netsmart Technologies, a provider of EHR solutions for the health and human services community, has acquired DeVero, Inc, a cloud-based EHR company focusing on the home health and hospice industries. The company has more than 57,000 users across 540 organizations. With this acquisition, Netsmart plans to integrate DeVero’s technology into its existing platform. The financial terms of this deal were not disclosed.
  • ABILITY Network, a developer of a suite of online solutions for healthcare providers in ambulatory, acute, and post-acute settings, has acquired Secure Bill Pay, provider of an all-in-one set of tools to enable providers to facilitate patient payments throughout the revenue cycle. The Company’s applications seamlessly integrate with electronic medical record, practice management, and patient portal systems enabling uninterrupted workflow across systems and reduced complexity for customers.  ABILITY plans to use the acquisition to develop advanced applications to solve patient payment challenges for its customers. The financial terms of this deal were not disclosed.
  • Autism Spectrum Therapies, provider of autism therapy programs for individuals with autism from infancy through adulthood, has acquired Autism Family Center, a Chicago-based behavioral health center with a focus on children. Through this partnership, Autism Spectrum Therapies continues to expand its services across the Midwest. Autism Spectrum Therapies also offers services in Arizona, California, Washington, New Mexico, Maryland and Louisiana. The financial terms of this deal were not disclosed.
  • Pan-American Life Insurance Group (PALIG) today announced that it has acquired HolaDoctor Inc., a company that develops and operates bilingual health and wellness portals for Hispanic consumers and businesses. HolaDoctor's digital marketing operation and insurance brokerage unit, which specializes in health insurance exchange products, provides PALIG with a new distribution channel to reach underserved Hispanic individuals and Hispanic-owned small businesses; and complements its existing producer network in the United States. The financial terms of this deal were not disclosed.
  • emids, a provider of IT and business process outsourcing services to payers, providers, revenue cycle management companies, and healthcare software vendors, has acquired Encore Health Resources, a healthcare information analytics company focused on value-based care and electronic health records for providers. The financial terms of this deal were not disclosed.
  • TractManager, Inc., a supplier of strategic sourcing and contract lifecycle management solutions, has acquired MedApproved, a company providing a SaaS-based, new product approval workflow solution to help hospitals review the thousands of products and services that physicians, nurses and staff request on a yearly basis. The financial terms of this deal were not disclosed

TripleTree and TT Capital Partners continuously monitor the market to identify the trends impacting the healthcare industry and deliver uncommon clarity to our clients and investors.  Thanks for reading!
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Lexie Moening
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