August 2021 M&A activity consisted of several compelling themes:
- Continued Remote Patient Monitoring (RPM) M&A Activity Driven by COVID-19: Since the initial uptick in telehealth usage in April 2020, utilization levels have remained steady at ~38x higher than the pre-COVID-19 baseline. Regulatory changes, brought about by the Centers for Medicare & Medicaid Services (CMS), have enabled easier access to telehealth solutions by allowing additional telehealth coverage in the 2021 physician fee schedule. With the significant increase in usage and greater access to care, investments in virtual health solutions have continued to accelerate, specifically within RPM solutions.
- Attractive Market Dynamics Within the Vision Care Industry Driving M&A Activity: The impact of an aging population combined with the growing prevalence of cataracts is fueling market moment for the vision care market. By 2050, it is estimated that the number of individuals in the U.S. with cataracts is expected to double, reaching an astonishing 50 million people – fueling the on-going demand for innovative and effective vision care solutions.
Several transactions in August aligned with these themes:
- ModivCare, a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions focused on improving patient outcomes, has announced that they have signed a purchase agreement to acquire VRI Intermediate Holdings, a national RPM provider that offers of a suite of services including personal emergency response (PERS), vitals monitoring, medication management, and data-driven patient engagement solutions. Under the terms of the agreement, ModivCare will acquire 100% of the equity interests in VRI for a purchase price of $315M, subject to customary purchase price adjustments. This acquisition will enable ModivCare to accelerate its strategy to build a holistic suite of supportive care solutions designed to address social determinants of health, deliver better care at home, and reduce healthcare costs. Deutsche Bank Securities acted as the financial advisor to ModivCare, and TripleTree acted as the financial advisor to VRI for this transaction.
- Connect America, a provider of digital health and connected care for seniors and vulnerable populations, announced it has signed an agreement to acquire 100Plus, the only RPM platform that uses artificial intelligence (AI). This acquisition will enable passive monitoring of patients in the home and patient engagement outside the physician's office.
- Pack4U, working in digital healthcare acquired CHC Health, a virtual pharmacist services company. The acquisition adds capacity to Pack4U's pharmacist-powered model to improve patient health outcomes at scale.
- Eye Health America (EHA), an eye care provider (and LLR portfolio company), announced the acquisition of Eye Centers of Florida, an ophthalmology practice serving the residents of Southwest Florida. This transaction will enable EHA to grow their network of eye care practices in the Southeast, solidify EHAs market presence in Southwest Florida, and service the vision care needs of aging population from St. Petersburg/Tampa to Naples.
- Sight Growth Partners, the administrative services provider for SightMD, SightMD New Jersey, and SightMD Pennsylvania - multi-specialty ophthalmology platforms in New York, New Jersey, and Pennsylvania respectfully, announced the expansion of its services into the state of Connecticut. Fichman Eye Center and the Laser & Vision Surgery Center have merged under the name of SightMD Connecticut.
- Vision Innovation Partners, a platform for ophthalmology service providers, announced that it has acquired Northeastern Eye Institute, an eye care center in Northeastern Pennsylvania, complete with 15 locations and one ambulatory surgery center. The acquisition strengthens Vision Innovation Partners' presence throughout Pennsylvania and expands its network of ophthalmology practices and ambulatory surgery centers in the Mid-Atlantic region.
- Unifeye Vision Partners, a network of comprehensive eye care providers, announced the completion of two strategic partnerships with San Luis Obispo-based Pacific Eye Surgeons and La Jolla-based Eye Care of La Jolla. These two practices represent growth for Unifeye Vision Partners in California beyond the Inland Empire, into the Central Coast, and greater San Diego regions.
TripleTree and TT Capital Partners continuously monitor the market to identify the forces and themes impacting the healthcare industry. Thanks for reading and, as always, let us know what you think!