MARKET ANALYSIS

Healthcare M&A Weekly 12.5.22

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 activity and highlights the industry transactions shaping the future of healthcare.
  

• Audax Private Equity has acquired Medi-Weightloss, a Florida-based operator of physician-supervised weight-loss and wellness clinics with approximately 100 locations nationally. Read more here.

 

• Abry Partners-backed CloudWave has acquired Sensato, a managed cybersecurity services company. Both companies operate exclusively in the healthcare space. Read more here.

 

• ADVI Health and Sheridan Capital Partners announced that Sheridan has taken an ownership stake in ADVI. Together, the companies aim to accelerate, strengthen, and extend ADVI’s position as an established market access, commercialization, and policy firm through the expansion of its solutions and product offerings. Read more here.

 

• Alpine-backed 24 Hour Home Care, a California-based in-home care provider, has acquired Inteli-Care, a New Mexico-based licensed and bonded Tier 1 authorized provider of personal care services. Read more here.

 

• Archimed-backed Natus Medical, a provider of medical device solutions to assess and treat brain disorders, agreed to acquire Middleton, Wisconsin-based medical device company Micromed Holding SAS. Read more here.

 

• Bionano Genomics [NASDAQ:BNGO], the San Diego-based biotechnology company, has signed an agreement to acquire Purigen Biosystems, a California-based company that develops and commercializes automated nucleic acid extraction and purification solutions. Purigen will be acquired for $64m, including $32m in cash at closing. Read more here.

 

• Boston Scientific Corporation [NYSE: BSX] has entered into a definitive agreement to acquire Apollo Endosurgery [Nasdaq: APEN] for a cash price of $10 per share, reflecting an enterprise value of approximately $615m. Apollo Endosurgery is expected to generate $76m in revenue (2022E), representing a ~8x revenue multiple. Read more here.

 

• CAIRE Inc, a US manufacturer of oxygen delivery equipment and subsidiary of NGK Spark Plug Co., entered into an agreement to acquire MGC Diagnostics Holdings, Inc for $170m. Read more here.

 

• Carenet Health, a leading provider of 24/7 and on-demand patient engagement solutions, announced it has acquired Stericycle Communication Solutions, an industry leader in patient engagement technology owned by Stericycle, Inc. (Nasdaq: SRCL). Read more here.

 

• Cobepa-backed Reaction Biology, a Pennsylvania-based provider of drug discovery and development services, has signed an agreement to acquire Bioassay Labor für biologische Analytik, a German provider of Good Manufacturing Practices (GMP) accredited potency assays and functional bioassays. Read more here.

 

• Enhabit, Inc. [NYSE: EHAB], a Dallas, Texas-based home health and hospice provider, has bought Southwest Florida Home Care, a Fort Meyers, Florida-based home health agency. Read more here.

 

• The Ensign Group [NASDAQ:ENSG], a California-based healthcare services company, has acquired Brighton Care Center, a Brighton, Colorado-based 108-bed skilled nursing facility, and Malley Transitional Care Center, a Northglenn, Colorado-based 162-bed skilled nursing facility. Read more here.

 

• IncreMedical Therapy Solutions, an IN-based member of the Confluent Health family, announced that it has acquired the Managed Services Agreement (MSA) division of Exos, an AZ-based corporate wellness provider and physical therapy company. This transaction expands IncreMedical's footprint with an additional 21 locations across 8 states.  Read more here.

 

• Integra LifeSciences (NASDAQ:IART), a leading global medical technology company, announced that it entered into a definitive agreement to acquire Surgical Innovation Associates (SIA), which develops, markets and sells DuraSorb®, a resorbable synthetic matrix for plastic and reconstructive surgery. The deal is expected to close for up to $140m, with $50m due at close and additional $90m due upon hitting certain financial milestones. Read more here.

 

• Linden Capital Partners, a Chicago-based private equity firm focused exclusively on the healthcare industry, has acquired LifeStyles Healthcare, a global sexual health and wellness platform, from a consortium of investors including Trustar Capital and Humanwell Healthcare. Read more here.

 

• Mirion Technologies (NYSE: MIR) announced that it has entered into a definitive agreement to sell the physical medicine assets of Biodex Medical Systems (“Biodex”) to Salona Global Medical Device Corporation for $5m in cash at closing and up to an additional $3m in deferred cash payments. The deferred cash payments are contingent on the performance of the assets during the 12-month period following closing. The assets generated approximately $18m in revenue with estimated gross margins of 30% during the most recent trailing twelve-month period. Read more here.

 

• NextGen Healthcare (Nasdaq: NXGN), a leading provider of cloud-based healthcare technology solutions, announced it has signed a definitive agreement to acquire TSI Healthcare, a privately held value-added reseller. The consideration consists of an upfront $68m paid in cash, with contingent consideration of up to $22m in the form of an earnout. Read more here.

 

• Nox Health, a Georgia-based global sleep health leader, has received a strategic growth investment from Vestar Capital Partners. Read more here.

 

• Onex-backed Newport Healthcare, a California-based mental healthcare provider for teens and young adults, has acquired PrairieCare, a Minnesota-based provider of mental health services. PrairieCare, founded in 2005, provides mental health services across 9 locations throughout Minnesota. Read more here.

 

• 5th Century Partners announced that it will recapitalize Radon Medical Imaging, a West Virginia-based leading independent service organization that services, assembles, repairs, sells and distributes medical imaging devices. Read more here.

 

• Sage Dental, a leading dental service organization, announced the acquisition of two new dental practices in Wesley Chapel and New Tampa, Florida. Sage Dental serves over 250,000 patients annually across two states and 85 offices. Read more here.

 

• Snap Health, a health technology company specializing in connecting clinicians with home healthcare facilities, announced an agreement to purchase Your Therapy signs with Source, one of the largest healthcare providers in the State of Texas. This transaction brings over 500 clinicians and 150 home health partners under the Snap Health umbrella. Read more here.

 

• SpringCreek Fertility, an Ohio-based, regional leader in reproductive endocrinology, announced that they have been acquired by affiliates of Innovation Fertility. Read more here.

 

• Strand Therapeutics, a MA-based developer of next-generation, programmable mRNA therapeutics, has raised an additional $45m in its Series A round, led by FPV with participation from Eli Lilly and Potentum Partners. Read more here.

 

• Thurston Group-backed ARC Health, an Ohio-based mental healthcare firm with over 320 psychiatrists practicing across 9 states, has announced the acquisition of Michigan-based Lotus Consulting, a mental health therapy practice. Read more here.

 

• U.S. Physical Therapy [NYSE:USPH], a Texas-based outpatient physical therapy clinics operator, announced the acquisition of an 80% stake in a 13-clinic physical therapy practice for $25m. The acquired business currently generates more than $12m in annual revenue, servicing over 120K annual patient visits. Read more here.

 

• United Vein & Vascular Centers (UVVC), a Tampa, Florida-based provider of vascular care treatment services, has been acquired by PE firm Amulet Capital Partners. UVVC currently operates 30 clinics across Florida, Colorado, Arizona and Illinois. Read more here.

 

• UpStream Healthcare, a leading value-based primary care and technology company, announced a $140m Series B funding, bringing its total funding to nearly $185m to date. The round was co-led by technology and global growth investors Coatue and Dragoneer with additional participation from other top healthcare and technology investors, including Avidity Partners, Define Ventures and Mubadala. Read more here.

 

• Vance Street Capital has acquired Innovize, an advanced medical contract manufacturer primarily focused on critical components of diagnostics, wearables and electronics-focused devices. Read more here.

              
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.