MARKET ANALYSIS

Healthcare M&A Weekly 2.27.23

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.
 

• Avantik announced that it has partnered with strategic healthcare investor Water Street Healthcare Partners to expand its products and services supporting anatomic pathology and histology laboratories with their operations. The diagnostics company also announced that it has appointed Mark Zacur as chief executive officer. Read more here.

 

• Axena Health, Inc., a newly-formed commercial-stage medical device company focused on women’s pelvic health, announced a $25M Series A investment from AXA IM Alts through its Global Healthcare Private Equity Strategy. The investment will support and expand access to the Leva Pelvic Health System, a prescription digital therapeutic that offers easy-to-use, at-home treatment for urinary incontinence and chronic fecal incontinence in women. The Leva System is cleared by the U.S. Food and Drug Administration to treat stress, mixed and mild-to-moderate urgency UI (including overactive bladder) in women and for first-line treatment of chronic FI in women. Read more here.

 

• AGS Health, a leading provider for tech-enabled revenue cycle management (RCM) solutions and strategic growth partner to healthcare providers across the U.S., announced the acquisition of the India-based patient access outsourcing business unit of the Florida-based healthcare technology company Availity. The acquisition allows AGS Health to expand the capabilities of the AGS AI Platform with new technology to enhance accuracy and scalability and further streamline patient access operations. Read more here.

 

• Aledade, a Bethesda, Maryland-based primary healthcare firm backed by OMERS and Fidelity Management has acquired Albany, New York-based Curia, a healthcare tech company using artificial intelligence to optimize patient care. Read more here.

 

• Amazon has closed its $3.9b deal for primary care provider One Medical. Amazon agreed last July to acquire One Medical to deepen its presence in healthcare, and “dramatically improve” the experience of getting medical care. Amazon has long had ambitions to expand into healthcare, buying online pharmacy PillPack in 2018 for $750 million, then launching its own virtual clinic for chronic conditions, and prescription perks for Prime members. The deal gives Amazon access to One Medical’s more than 200 brick-and-mortar medical offices in 26 markets, and roughly 815,000 members. Read more here.

 

• Avita, a Plano, Texas-based national healthcare services organization committed to providing comprehensive, compassionate, and inclusive healthcare solutions to underserved communities and is backed by Kinderhook Industries, has acquired three San Antonio, Texas-area specialty pharmacies from Lifecare Pharmacy. Avita has served patients in the San Antonio area for more than 10 years, the purchase of Lifecare Pharmacy's Laurel Heights, Pavilion, and Empire locations doubles Avita's presence in the area. Read more here.

 

• Crum & Forster Accident & Health (C&F) has announced the acquisition of medical stop loss insurance agency, Partners Managing General Underwriters LLC, as the latest move in expanding its position in the self-insured marketplace. C&F has been underwriting stop loss insurance for over 20 years and will continue to offer a broad suite of products and services on a direct and program basis through various distribution channels including managing general underwriters, managing general agencies, brokers and third party administrators. Read more here.

   

• Espire Dental, a Rallyday Partners-backed dental organization, has acquired La Costa Dental Group based in Encinitas, California. Adding La Costa Dental Group strengthens Espire's position in the Southern California market while expanding the quality of dental care available to patients throughout the state. Read more here.

 

• GeBBS Healthcare Solutions, a Los Angeles-based revenue cycle management software products firm, has acquired CPa Medical Billing, an East Haven, CT-based provider of medical billing services to FQHCs and other multi-specialty physician groups. GeBBS is a portfolio company of ChrysCapital. Read more here.

 

• HealthComp Holding Company LLC (HealthComp), a Fresno, California-based third-party healthcare benefits administrator backed by New Mountain Capital, has acquired MediOpin, an Atlanta, Georgia-based provider of medical opinion-based reviews and medically driven cost containment services. MediOpin’s payment integrity, medical management, and medical opinion services ensure accurate reimbursement while driving improvements in care quality. Read more here.

 

• Health Connect America, Inc., a mission-driven behavioral health services platform backed by Palladium Equity Partners, announced that it has completed the acquisitions of First Home Care and North Star Counseling of Central Florida. These transactions build on the Company's previous three acquisitions announced in early 2022 and advance the Company's geographic reach and breadth of services to the more than 21,000 children and their families it serves in seven states across the southeast portion of the United States. Read more here.

 

• Irwin Naturals Inc. (CSE: IWIN) announced the Company has successfully completed the acquisition of Serenity Health, LLC, one of the leading ketamine clinics in Louisville, KY. The agreement with Serenity was initially announced November, 30, 2022. The acquisition, completed on February 16, 2023, marks two key milestones in Irwin’s Emergence clinics growth strategy in the mental health industry. First, the acquisition is expected to be immediately accretive increasing the company's annualized EBITDA by double digits and second, the addition of this clinic further demonstrates Irwin’s ability to attract profitable clinics as part of its goal to establish the world's largest network of psychedelic mental health clinics. Read more here.

 

• Premier Inc. (NASDAQ: PINC) acquired the 100 Top Hospitals® program from Merative (formerly IBM Watson Health). The program will be integrated within PINC AI™, Premier’s technology and services brand. Launched in 1993 by Truven Health Analytics, the primary purpose of the 100 Top Hospitals program is to inspire hospital and health system leaders to pursue higher performance and deliver added value to their patients and communities. The program develops and provides scorecards derived from nationally recognized metrics and is published annually by Fortune as the 100 Top Hospitals, 15 Top Health Systems and 50 Top Cardiovascular Hospitals. Read more here.

   

• Repair Authority, an HME repair company, has acquired Pitcock Biomedical, a Manchester, Tenn.-based HME repair company. The deal extends Repair Authority’s services for oxygen and sleep devices such as oxygen concentrators, CPAPs, and ventilators into the Southeast United States. With the integration of Pitcock Biomedical and MSC Biomedical, Repair Authority is now one of the largest HME repair companies in the country, serving HME providers in all 50 states. It holds Authorized Warranty Service Center contracts with vendors such as Philips Respironics, ResMed, Invacare, Drive DeVilbiss, O2 Concepts, Rhythm Healthcare, Direct Supply and CAIRE. Read more here.

   

• Thompson Street Capital Partners (TSCP), a private equity firm based in St. Louis, has announced a growth investment in OpenClinica, a cloud-first, unified eClinical platform that accelerates clinical research by allowing users to automatically capture data from Electronic Health Records (EHRs) while integrating with existing clinical workflows. For more than 15 years, OpenClinica has been a provider of electronic data capture, eSource, eCOA/ePRO, randomization, RWD integrations, and analytics and reporting solutions. Read more here.

 

• Vytalize Health, a Hoboken, New Jersey risk-bearing provider enablement platform, raised $100M in funding led by Enhanced Healthcare Partners and Monroe Capital, with participation from North Coast Ventures. The new financing round will accelerate the shift to more responsible outcomes-based payment models that increase healthcare's value, promote equity, and create sustainable long-term change. Read more here.

 

• WorkforceQA (WFQA), a provider of employee compliance screening solutions, has acquired Corporate Medical Services, a full-service Third-Party Administrator that helps companies manage regulations and requirements. CMS, located in Chattanooga, serves over 4,000 companies. Read more here.

 

• Webster Equity Partners, a private equity firm, made an investment in Pediatric Affiliates PA, a Toms River, New Jersey-based pediatric network. The capital will allow Pediatric Affiliates to expand its network and invest in expanding behavioral health services. 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.