MARKET ANALYSIS

Healthcare M&A Weekly 2.6.23

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.
  

• Allied Physicians Group, a Melville, New York-based provider of pediatric care, and Adjuvant.Health, a Melville, New York-based provider of physician-led medical practice administration, have received an undisclosed amount of investment from Ascend Capital Partners. Proceeds are earmarked for growth and expansion. As part of the investment, CareAbout, a management services organization affiliated with Ascend Capital Partners, will partner with Adjuvant.Health to improve healthcare delivery and clinical quality. Read more here.

 

• Alto Neuroscience Inc. announced a $25M equity investment by new investor, Alpha Wave Ventures. This brings Alto’s total Series B funding to approximately $60M and in addition, Alto recently entered into a credit facility with K2 HealthVentures for up to $35M, allowing access to additional capital and flexibility as the company advances its clinical-stage pipeline. Funding to date will support Alto through a total of four Phase 2 readouts with four novel drug candidates across three indications, as well as the continued evolution of Alto’s Precision Psychiatry Platform™. Read more here.

 

• Biosynex [EPA:ALBIO], a French-based medical diagnostic equipment provider, has entered into a definitive merger agreement to acquire Chembio Diagnostics [Nasdaq:CEMI], a Hauppauge, New York-based leading point-of-care diagnostics company focused on infectious diseases. Biosynex will acquire Chembio for $0.45 per share, representing a premium of 27% compared to the closing price of Chembio stock on 30 January 2023, in an all-cash transaction valued at $17.2M. The acquisition combines two leading rapid diagnostic test companies. Read more here.

 

• Center for Pain Management, an Indianapolis, Indiana-based network of interventional pain management practices, has acquired Indiana Spine & Pain Institute, an Evansville, Indiana-based interventional pain practice. An industry leader in interventional pain care, Indiana Spine & Pain Institute's three southern-Indiana clinics specialize in cutting-edge, interventional pain treatments for confronting common sources of chronic pain. This acquisition brings Center for Pain Management's total number of Indiana clinics to seven, expanding their footprint to Evansville, Jasper, and Rockport, Indiana. Read more here.

 

• Charles River Laboratories International [NYSE:CRL], a Wilmington, Massachusetts-based contract research organization, has acquired an additional 80% stake in SAMDI Tech, a Chicago-based leading provider of high-quality, label-free high-throughput screening (HTS) solutions for drug discovery research. The acquisition marks the culmination of a partnership between the companies that began in 2018. Read more here.

 

• DermCare Management, a Hollywood, Florida-based dermatology practice management company, acquired ADF Dermatology in Sarasota, Florida, Advanced Dermatology, PA in Jacksonville, Florida and First OC Dermatology in Fountain Valley, California. DermCare, backed by Hildred Capital Management, manages almost 150 providers in three states. Read more here.

 

• Diversified Maintenance, a leading service provider for quality facilities maintenance services, announced the acquisition of Perennial Medical Cleaning Solutions, a Florida based all-inclusive medical cleaning service provider. The acquisition is a strategically important one as it aligns with the Company’s vision of vertical and market growth in the evolving facilities management industry. Read more here.

 

• DrFirst, a Rockville, Maryland-based technology platform to advance patient care and provider communication, has acquired select assets of Indianapolis-based Diagnotes, a firm that provides a suite of team-based, patient-centered collaboration tools built specifically for the healthcare sector. The acquisition will allow Backline by DrFirst to expand its capabilities to break through communication silos in healthcare at each stage of the patient care journey, promote positive patient outcomes, and enhance satisfaction for staff and patients. Read more here.

 

• Health Management Associates, a Lansing, Michigan-based healthcare and human services research and consulting firm backed by BPOC, has acquired Lovell Communications, a Nashville, Tennessee-based strategic communications and change management firm that exclusively serves the healthcare industry. HMA has offices in more than 20 locations across the country and over 500 consultants. Read more here.

 

• Health Technologies Inc., a St. Louis, MO-based based provider of consulting dietitians, menus and food-service software, backed by Evolution Capital Partners, has acquired Tempe, Arizona-based Nutrition Alliance, a company that provides Registered Dietitian and Certified Dietary Manager consulting and training for 184 senior living communities primarily in Arizona. Read more here.

 

• Knack Global, a Woodbridge, New Jersey-based healthcare revenue cycle management (RCM) company, has acquired Delta Business Systems, dba MediSYS, a Birmingham, Alabama-based premier provider of medical billing services, and practice management/electronic medical record software sales. In January 2022, Knack Global was recapitalized through an investment led by LKCM Headwater Investments and supported by Weave Growth Partners. The acquisition will enable Knack to further expand its offerings and expand geographically to the southern United States. Read more here.

 

• NOCD, a Chicago, Illinois-based telehealth company focused on obsessive compulsive-disorder (OCD) treatment, announced a $34M financing round co-led by Cigna Ventures and 7wireVentures. Other participants were new investor Longitude Capital and existing investors Kaiser Permanente Ventures, F-Prime Capital, Eight Roads Capital and Health Enterprise Partners. Read more here.

 

• OCLI Vision and Spectrum Vision Partners have acquired Bausch Eye Associates, an Allentown, PA-based multi-specialty ophthalmology practice. OCLI Vision is a leading ophthalmology practice whose growth is supported by the management and administrative services of Spectrum Vision Partners (SVP), an organization serving many of the top ophthalmologists, optometrists and ambulatory eye surgery centers in New York, New Jersey, Connecticut, Pennsylvania, and West Virginia. Read more here.

 

• Parkview Health System and UCHealth have signed an agreement to bring the two health care providers together. The partnership will provide investments to strengthen the health care services currently offered in Pueblo and throughout southern Colorado. As Parkview and its employees join UCHealth in mid-2023, UCHealth will begin investing nearly $200M into Parkview and the Pueblo community. Read more here.

 

• Paradigm, a Walnut Creek, California-based specialty care management organization, has acquired Welvie, a Chicago, Illinois-based health care decision-support company. The Paradigm-Welvie partnership will  combine the unique assets and capabilities of the two organizations to enhance each other's  current products and services, while enabling development of new solutions to improve  outcomes for patients, families, and customers. TripleTree served as the exclusive financial advisor to Welvie for this transaction. Read more here.

 

• Paradigm, a New York-based clinical trial tech platform, has raised $203M in a Series A round led by ARCH Venture Partners and General Catalyst. Paradigm will use the money to build a clinical research platform for provider and biopharmaceutical customers. The company has also acquired Deep Lens, a clinical trial patient recruitment company focused on oncology, for an undisclosed price. Read more here.

 

• Princeton Medspa Partners, a Princeton, New Jersey-based aggregator company of medspas and aesthetic medical practices, has acquired Skintastic Med Spa, a Spring Hill, Florida-based company that offers facials, massages, injectables, skin rejuvenation, lasers, bioTE hormone replacement therapy, IV therapy and fat reduction. Read more here.

 

• Ribon Therapeutics, a clinical-stage biotechnology company developing therapeutics to target stress support pathways, announced a $25M investment from Pfizer. Ribon plans to use the proceeds to support clinical development of its potentially first-in-class oral small molecule programs in oncology and immunology. Read more here.

 

• Science 37 Holdings, Inc. (Nasdaq: SNCE), the industry-leading Metasite, announced that it has acquired the life sciences platform from Vault Health, a national leader in remote diagnostics and COVID testing, to further enhance clinical trial workflow orchestration and data interoperability capabilities of the Science 37 platform. Read more here.

 

• Solaris Health, a Fort Lauderdale, Florida-based provider of urological and other specialty services backed by Lee Equity Partners, has acquired UroPartners and Lowcountry Urology Clinics. UroPartners is a Chicago-based leading provider of integrated urologic services by providing unrivaled quality, communication and personalized care. Lowcountry Urology Clinics is a Charlestone, South Carolina-based provider of care services for women and men facing urinary and sexual disorders. Read more here.

 

• Thorne HealthTech [NASDAQ: THRN], a Summerville, South Carolina-based developer of innovative solutions for a personalized approach to health and wellbeing, has acquired PreCon Health, a provider of health solutions, focused on brain health, for $5M. Thorne HealthTech has a market cap of $256.81M. Read more here.

 

• Tivity Health, a provider of healthy life-changing solutions, announced that it has acquired Burnalong, a Maryland-based digital health, wellness and fitness platform. The acquisition will accelerate Tivity Health's efforts to provide consumers with a robust digital platform and extensive health and wellness content, in addition to in-person opportunities through its network of fitness locations. Burnalong will also further enable Tivity Health to support diverse and at-risk populations with condition-specific programming for a range of chronic diseases. Tivity Health is backed by Stone Point Capital. Read more here.

 

• Tyber Medical LLC has acquired 100 percent of the capital of ADSM-Synchro Medical, a French orthopedic medical device company, specializing in the development and distribution of implants dedicated to treating surgical forefoot pathologies.The acquisition of ADSM will play a key role in strengthening Tyber Medical's international presence and fueling its global growth strategy with a wider range of product options in the MIS bunion, PEEK hammertoe and screw fixation arenas. With the integration of ADSM's EXray, ToeGrip and TigerTrack platforms into its private label spine, extremity and trauma portfolio, Tyber Medical is now positioned to better serve its partners in Europe. Read more here.

 

• Victori Group, a private equity investment group specializing in healthcare supply chain, liquidation channels and operations, has acquired the assets of The Alternative Source Medical located in Vernon Hills, IL. The Alternative Source Medical is a leading medical and surgical equipment provider that supplies new, used, and professionally refurbished equipment. Read more here.

 

• Vivo Infusion, a Denver, Colorado-based provider of accessible and affordable ambulatory infusion care, announced that it has acquired CIVIC Infusion, a Connecticut-based provider of safe, convenient, and affordable care for infusion patients. Vivo Infusion is backed by PE firm InTandem Capital Partners. Vivo Infusion will have a combined 36 ambulatory infusion centers across nine states, upon deal completion.
  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.