June 2022 M&A activity highlighted several compelling themes:
- Adoption of Cloud-based Solutions: Cloud-based solutions designed to minimize cost and improve efficiency continue to gain market traction and investment. With enhanced data storage and analysis capabilities, healthcare operators can garner additional insights leading to better quality of care and physician satisfaction. Additionally, as practices scale, cloud computing offers significantly more flexibility than legacy models along with increased security. Cloud-based solution adoption is expected to continue across a variety of verticals, with recent notable activity in the hospital operations and pharmacy benefit management space.
- Integration of Services in a Virtual Setting: Several of the COVID-19 pandemic’s changes to healthcare consumer behavior appear to be here to stay. Increased adoption of virtual care, particularly among Americans 65 years and older, greatly assisted those in need of medical attention who also desired to remain in the safety and comfort of their at-home environment. Further developing virtual care offerings and improving usability can continue to help alleviate the burden faced by individuals with less access to quality care, such as patients in rural areas.
- Empowering Digitization and Interoperability within Healthcare Services: Along with the adoption of cloud computing, conversion from legacy data services and interoperability is vital to a functional future of healthcare service delivery. Deployment of software to that captures data analytics in real-time aids physician understanding of patient health as well as highlights how services can be improved. The implementation of interoperable solutions into healthcare service providers drives modernization of practice management, enhancing capabilities that lead to superior patient outcomes.
Several transactions and partnerships in June aligned with these key themes:
- Francisco Partners, a technology and healthcare investment firm, announced it closed on the sale of Trellis Rx, a technology-enabled specialty pharmacy services provider, to CPS Solutions, a provider of enterprise pharmacy solutions to hospitals and health systems. The transaction will further build out CPS Solutions’ enterprise platform and technological capabilities. TripleTree acted as a financial advisor to Trellis Rx.
- LeanTaaS Holdings, a provider of cloud software solutions for hospital operations and capacity management, announced that Bain Capital Private Equity acquired a majority stake in the company from existing investors Insight Partners and the Growth Equity business within Goldman Sachs Asset Management. The investment will allow LeanTaas to accelerate its growth and scale operations.
- Capital Rx, a cloud-based healthcare management platform for the pharmacy benefits industry, announced the close of its $106M Series C funding led by B Capital, with participation from General Catalyst and existing investors Transformation Capital and Edison Partners. Capital Rx will invest in further development of the platform.
- Digital Health Acquisition Corporation announced that it signed a definitive agreement to acquire VSee Lab, a telehealth software company, and iDoc Telehealth Solutions, a neurocritical care and intensive care telehealth provider. The newly combined company, VSee Health, will integrate iDoc’s intensive care and neuro solution as its first module for the VSee software platform.
- ShiftKey, a platform for connecting independently licensed healthcare professionals with open shifts at healthcare facilities in the US, announced that it completed a strategic investment in Cleveland-based OnShift, a provider of workforce management technology for post-acute and long-term care facilities. This acquisition will expand ShiftKey's product offerings. TripleTree acted as exclusive financial advisor to OnShift.
- Pinnacle Treatment Centers, a community-based drug and alcohol addiction treatment provider, announced that it had acquired Stepping Stone of North Carolina, an outpatient opioid addiction treatment program. The acquisition will expand Pinnacle's service offerings and footprint.
- Nomad Health, a digital marketplace for temporary healthcare jobs, announced the closing of a $105M financing co-led by Adams Street Partners and Icon Ventures. Nomad will use this new funding to expand its marketplace beyond travel nurses to serve allied health professionals, including laboratory technicians, physical therapists, and ultrasound technicians.
- Idoven, a health tech company advancing early detection and precision medicine of cardiovascular disease, announced that it raised $19.8M in funding. The funding consists of a $12.9M Series A round co-led by Insight Partners. The new funding will be used to further develop the company's AI platform to identify arrhythmias and cardiac abnormalities, as well as accelerate hiring.
TripleTree continuously monitors the market to identify the forces and themes impacting the healthcare industry. Thanks for reading and, as always, let us know what you think!