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Noteworthy M&A Transactions – September 2017

OCT 10
Healthcare M&A activity in September 2017 highlights a few key themes we’ve been seeing in the market recently:
 
  1. Employers are wising up to workplace wellness. Not only is the millennial workforce taking over, but their differentiated values are a curveball for old-school employers. With workplace wellness programs ranking high on the millennial wish list, employers are partnering with innovative employee wellness companies to ensure retention, job satisfaction, and maintain high productivity. As a result, the workplace wellness market is showing momentum, and companies like Viverae and Livongo Health are scaling their platforms.
  2. ABA: The new kid on the block. Applied Behavioral Analysis (commonly referred to as ABA) therapy is a relatively new methodology of treating children with autism. It wasn’t until the past decade or so that ABA therapy started receiving recognition as a legitimate, reimbursable treatment option by commercial insurers. With the prevalence of autism rising at a tremendous rate, ABA therapy providers are using M&A as a means of quickly establishing themselves within the autism market.
  3. Behavioral Health, meet, Technology. We’re beginning to see tech-moguls partner with clinical professionals to bring consumers accessible, private, and cost-effective treatment options through creative platforms such as Happify and Talkspace. The combination of consumer-oriented technology and clinical intervention reminds us of the first wave of tech-enabled engagement solutions.
 
Transactions that caught our eye in the month of September:
 
  • Viverae, a Dallas -based technology platform focused on the connection between workplace wellness and insurance premiums, has announced the acquisition of SimplyWell, an Omaha-based health coaching and screening platform. The acquisition will expand Viverae's reach, and the company will continue to be rooted in care and focused on addressing, improving, and controlling health factors within organizations. The financial terms of this deal were not disclosed.
 
  • Livongo Health, a Silicon Valley-based chronic condition management company with focus on the employer market, has acquired Diabeto, a New Jersey-based provider of devices that enable Bluetooth connectivity to nearly all glucose meters available on the market today. The impetus for the transaction was making Diabeto’s connectivity assets available to Livongo users. The financial terms of this deal were not disclosed.
 
  • Talkspace, a New York-based provider of an online therapy platform that connects users to therapists for one-on-one discussions, has announced it has closed $31M Series C funding. Qumra Capital led the round with participation from existing investors including Norwest Venture Partners, Spark Capital, SoftBank, Compound Ventures and FirstTime.
 
  • Fidelity National Financial, Inc., has announced that FNFV Group has signed a definitive agreement to acquire T-System, a provider of clinical documentation and coding solutions for hospital-based and free-standing emergency departments and urgent care facilities, for $200M. FNFV expressed confidence in the ability to accelerate future growth through acquisitions to expand its product and service offering.
 
  • Petra Capital Partners and MMC Health Services have acquired Alternative Behavior Strategies, a Salt Lake City-based provider of in-home and center-based applied behavior analysis therapy, speech therapy, and occupational therapy services to children and adults with autism spectrum disorder, as well as other disabilities. The financial terms of the deal were not disclosed.
 
  • White Oak Healthcare Finance has provided an undisclosed amount of funding to Hopebridge, a Indianapolis-based provider of pediatric, clinic-based, outpatient therapy services to children and adolescents with developmental and behavioral challenges. 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