MARKET ANALYSIS

Healthcare M&A Weekly 1.30.23

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.
 

• Agile Occupational Medicine, a West Compton, California-based occupational healthcare clinics owner and operator has completed a merger with Costa Mesa, California-based Pinnacle HealthCare. Agile, backed by Angeles Equity Partners, offers a wide range of occupational health programs that work to provide cost-effective solutions for companies and employees. The combined practices will provide 14 clinics throughout California and Arizona, creating the fourth-largest occupational medical group in California. Read more here.

 

• Apara Autism Centers, a Houston, Texas-based Applied Behavior Analysis (ABA) service provider, has acquired Autism Learning Collaborative as well as the the Missouri operations of Early Autism Services. Apara, backed by Havencrest Capital Management, will use the acquisition to expand their clinic- and home-based therapy services to children and adolescents in Nebraska, New Mexico, Oklahoma, Missouri, and Texas. Read more here.

 

• ARC Health, a portfolio company of Thurston Group, has acquired Colorado Center for Clinical Excellence, a Denver-based mental healthcare provider group providing psychotherapy and group therapy for adolescents and adults. The acquisition will help ARC Health expand their presence in Colorado and improve psychotherapy services. Read more here.

 

• CareAcademy, a Boston, Massachusetts-based training and compliance platform for senior care professionals, has acquired the assets of NextStep, the Seattle, Washington-based innovative digital healthcare training and job placement company for certified nursing assistants (CNAs). CareAcademy will acquire NextStep’s video-based content and learning management technology to expand its footprint and training solutions. Read more here.

 

• Elevance Health has entered into a definitive agreement to acquire Blue Cross and Blue Shield of Louisiana (BCBSLA). The acquisition is expected to close later this year and upon closing, Elevance Health's affiliated Anthem Blue Cross Blue Shield plans will operate within 15 states across the U.S. Read more here.

 

• Firmament, a New York-based private equity firm, has made an investment in Family Tree Private Care, a provider of concierge-level caregiving, private nursing, and care management services to families throughout Texas and Colorado. Firmament's investment will allow Family Tree to deliver on various organic and inorganic growth strategies and improve their suite of home care services. Read more here.

 

• GI Alliance, a Dallas-based gastroenterology practice management group, has acquired Connecticut GI (CTGI). CTGI is currently the largest GI practice in Connecticut, employing 82 physicians and 45 advanced practice providers throughout 25 practices and 25 procedure locations. GI Alliance finalized a physician led-buyout and partnership with Apollo Global Management in August 2022. Read more here.

 

• Green Prosthetics and Orthotics, an Erie, Pennsylvania-based custom fabricator of prosthetic and orthotic devices, has been acquired by Mobility Ideal Health Care, an Edison, New Jersey-based provider of orthotics and prosthetics products and services. The transaction will allow Mobility to expand their suite of mobility services. Read more here.

 

• Lifepoint Health, a Brentwood, TN-based healthcare facility operator, has acquired Cornerstone Behavioral Health El Dorado, a Tucson, Arizona-based behavioral health facility. Cornerstone Behavioral Health currently has 54 beds and 100 employees while Lifepoint Health has over 50,000 employees with a total of 262 sites of care. Read more here.

 

• Longevity Biomedical, a Bothell, Washington-based biopharmaceutical company, has reached an agreement to merge with special purpose acquisition company, Denali Capital Acquisition [NASDAQ:DECA]. The combined entity will operate as Longevity Biomedical and is expected to list under the ticker "LBIO". The transaction represents and equity valuation of ~$236M of the combined company. Longevity will focus on advancing new technologies to promote human health and longevity post-merger. Read more here.

 

• MedAvail Holdings [NASDAQ: MDVL], a Canadian pharmacy automation services provider, has entered into a definitive agreement with US-based CVS Pharmacy for the sale of certain assets of MedAvail’s SpotRx pharmacies located in Arizona, California, Michigan and Florida. Read more here.

 

• MIACH Orthopaedics, the Boston, Massachusetts-based developer of bio-engineered surgical implants for connective tissue repair, has raised $30M in a Series B round led by Sectoral Asset Management and Endeavour Vision. MIACH Orthopaedics focuses on the treatment of anterior cruciate ligament (ACL) through implants and related services. Read more here.

 

• NMS Capital-backed, US Foot & Ankle Specialists, a Rockville, Maryland-based provider of treatment services for foot and lower extremity conditions, has acquired three podiatry practices. The acquisitions include Mid-West Podiatry & Associates, which operates five clinics in Missouri, First Choice Ankle & Foot Care Center, which operates two clinics in Kentucky, and Foot Specialists of Kansas City, which operates three clinics in Kansas and Missouri. US Foot & Ankle has prioritized M&A in recent months to enhance operations and expand their geographic footprint. Read more here.

 

• Novant Health Enterprises, a division of Charlotte, North Carolina-based Novant Health, and TPG, the global alternative asset management firm, have partnered to expand MedQuest Associates which will create a new national imaging center management company. TPG's investment in the partnership is being made through TPG Growth, the firm's middle market and growth equity platform. Read more here.

 

• Pearl Health, a New York-based health group focused on physician enablement and risk bearing in value-based care, has secured $75M from a Series B investment round led by Andreessen Horowitz and Viking Global Investors. AlleyCorp and SV Angel also participated in the round. Pearl Health plans on using the capital to expand their network and accelerate the development of innovative solutions for providers. Read more here.

 

• Radon Medical Imaging, a Charleston, West Virginia-based medical imaging equipment maintenance and repair services company backed by 5th Century Partners, has acquired Premier Imaging Medical Systems, a Rome, Georgia-based provider of maintenance services and sales for new, used and refurbished imaging and biomedical equipment. The transaction represents Radon's continued focus on the expansion of their existing solution suite and geographic footprint. Radon was recapitalized by 5th Century Partners in September, 2022. Read more here.

 

• ReviveHealth, a Jacksonville, Florida-based affordable health care subscription solutions company, has acquired SwiftMD, an Exton, PA-based virtual care services company. The deal was structured as a majority recapitalization and facilitated by EIR Partners, a Miami-based private equity firm. The combined entity will serve over 1 million patients across the U.S. through a broad suite of on-demand health services. Read more here.

 

• VillageMD, a Chicago, Illinois-based primary care provider, has acquired Family and Internal Medicine Associates, the largest network of independent primary care practices in central Kentucky. The acquisition will allow VillageMD to continue increasing access to trusted physicians and high-quality care for patients in Kentucky. Read more here.

 

• Wellness Coaches, a Blue Bell, Pennsylvania-based worksite and technology-based wellness coaching provider, has acquired Corporate Health Solutions, a Jamison, Pennsylvania-based biometric testing, health coaching, health assessments, and physician consulting services firm. The deal will help Wellness Coaches improve their suite of clinical and wellbeing capabilities, according to CEO, Rob Putnam who also claimed the company would continue pursuing M&A in the fragmented wellness coaching and registered dietician markets. 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.