MARKET ANALYSIS

Healthcare M&A Weekly 3.6.23

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.
   

• Adamis Pharmaceuticals Corporation [NASDAQ:ADMP], a San Diego, California-based specialty biopharmaceutical company, will buy DMK Pharmaceuticals, Corp, a Gladstone, New Jersey-based clinical-stage biotechnology company. Read more here.

 

• agilon health [NYSE:AGL], an Austin, Texas-based provider of health-management services for physicians, announced it has acquired Princeton, New Jersey-based mphrX, a provider of value-based care technology and interoperability solutions for $45M. Management does not anticipate mphrX will have a meaningful impact on agilon’s adjusted EBITDA during 2023. Read more here.

 

• BetterNight, a San Diego, California-based provider of positive airway pressure services, has raised $33M in a new funding round led by NewSpring. The round also saw participation from existing investors HCAP Partners and Hamilton Lane [NASDAQ:HLNE] via its Impact Fund II. Proceeds are earmarked for product development, growth and expansion. Read more here.

 

• Bio-Techne Corporation [NASDAQ:TECH], a Minneapolis, MN-based life sciences company, announced that it has acquired a 20% stake in Wilson Wolf Manufacturing, a St. Paul, MN-based manufacturer of cell production technology, for $257M. The agreement also includes the right to acquire the remaining interest for $1BN on Wilson Wolf achieving $226M in revenues and $136M in EBITDA in trailing 12 months. Read more here.

 

• BioTouch, a West Haven, CT-based provider of outsourced medical supplies, kitting, and logistics services to the healthcare industry and portfolio company of Atlantic Street Capital, has acquired Titan Solutions, a provider of logistics, kitting, and life sciences supply chain management solutions. Read more here.

 

• Bluetree Dental, a Reno, Nevada-based multi-specialty, pediatric and orthodontics-focused dental service organization, has received a $32M investment from Clairvest Group. Read more here.

 

• CodaMetrix, a Boston, Massachusetts-based revenue cycle software-as-a-service business, has raised $55M in Series A funding in a round led by SignalFire. Read more here.

 

• Cureatr, a New York City-based medication management services company, has acquired the SinfoníaRx business, a Tucson, Arizona-based medication therapy management firm, from Tabula Rasa HealthCare, Inc. [NASDAQ:TRHC], a Moorestown, New Jersey-based healthcare technology firm. SinfoníaRx has an estimated $88.2M in sales. Read more here.

 

• DocMJ, a Clearwater, Florida-based provider of cannabis physician services, has acquired Medwell Health and Wellness Centers, a Brockton, Massachusetts-based medical cannabis health evaluation service. Read more here.

 

• DOCS Dermatology, a Cincinnati, Ohio-based dermatology management platform company, backed by SkyKnight Capital, has acquired Dayton, Ohio-based Miami Valley Plastic Surgeons as their newest partner practice. Read more here.

 

• DIH Holding US, Inc., a global robotics and virtual reality technology provider in the rehabilitation and human performance industry, and Aurora Technology Acquisition Corp. [NASDAQ: ATAK], a publicly-traded special purpose acquisition company, announced they have entered into a definitive business combination agreement that will result in DIH becoming publicly listed. Read more here.

 

• The Ensign Group, Inc. [NASDAQ: ENSG], which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced that it acquired the operations of Hampden Hills Post Acute, a 218-bed skilled nursing facility located in Aurora, Colorado, and Mapleton Post Acute, an 84-bed skilled nursing facility located in Lakewood, Colorado. Read more here.

 

• Enviva [NYSE:EVA] has entered into definitive agreements with board members and insiders for the issuance and sale of $250 million of equity securities. The $250M PIPE transaction is led by affiliates of shareholders Riverstone Holdings and Inclusive Capital, and BTG Pactual.  Read more here.

 

• Fluxergy, an Irvine, California-based medical diagnostic company focused on multiplex, multimodal point-of-care (POC) testing, has acquired certain employees and assets and licensed electrochemical biosensing technology from InnaMed, Inc., a Philadelphia, Pennsylvania-based Y Combinator-backed biotechnology company. Read more here.

 

• Gentiva, an Atlanta, Georgia-based hospice, palliative, and personal care company, has definitively agreed to acquire the Heartland Hospice home care agencies and services from Toledo, Ohio-based ProMedica, a healthcare organization. Read more here.

 

• IMAC Holdings, Inc. [NASDAQ:IMAC], a Brentwood, Tennessee-based provider of medical care specializing in orthopedic treatments, has sold The BackSpace to Curis Functional Health, based in Dallas, Texas. Read more here.

 

• Kindbody, a New York City-based provider of fertility and family planning services, raised $100M in a funding round from Perceptive Advisors. Funds will be used to support future company growth. The latest financing brings Kindbody's total equity and debt funding to more than $290M, and its valuation to $1.8B. The company had been raising a $75M Series D crossover round in preparation for an initial public offering, likely in 2023. Read more here.

 

• Lifepoint Health, a diversified healthcare delivery network dedicated to its mission of making communities healthier®, announced that it has acquired four inpatient rehabilitation facilities from Everest Rehabilitation Hospitals, a multispecialty rehabilitation hospital company. Read more here.

 

• OCLI Vision has acquired Hudson Valley Eye Associates, a Tarrytown, New York-based health care center provider of ophthalmology practices. OCLI Vision is an ophthalmology practice whose growth is supported by the management and administrative services of Spectrum Vision Partners (SVP). Read more here.

   

• Rhythm Pharmaceuticals, Inc. [NASDAQ:RYTM], a Boston-based commercial-stage biopharmaceutical company focused on hyperphagia and severe obesity, announced the acquisition of Xinvento B.V., a Netherlands-based biotech company focused on developing therapies for congenital hyperinsulinism. Read more here.

 

• TriasMD, a musculoskeletal management company focused on delivering superior care and experiences while reducing healthcare costs, has announced its acquisition of Gateway Surgery Center in Santa Clarita. Read more here.

 

• Unio Health Partners, a Triton Pacific Capital Partners portfolio company, announced a partnership with inSite Digestive Health Care, which joins the platform as the fourth major division of Unio. Read more here.

 

• UpHealth [NYSE: UPH], a Delray Beach, Florida-based digital health company, has agreed to divest Innovations Group Inc, a suite of companies focused on health and wellness, to Belmar Pharma Solutions, for approximately 56M. Read more here.

 

• U.S. Physical Therapy [NYSE:USPH], a Houston, Texas-based outpatient physical therapy clinics operator, announced that it has acquired an 80% stake in a physical therapy practice with one large clinic for $6.2M. Read more here.

 

• VillageMD, a primary care provider and majority owned by Walgreens Boots Alliance [NASDAQ:WBA], has acquired Starling Physicians, a primary care and multi-specialty group in Rocky Hill, Connecticut. Read more here.

 

• Wedgewood Pharmacy, a Swedesboro, New Jersey-based pharmaceutical company, has acquired Front Range Laboratories in Loveland, Colorado, which is a full-service testing laboratory partnering with compounding pharmacies for more than 25 years. Read more here.

 

• West Physics Consulting, the leading national provider of integrated medical and health physics services, backed by LNC Partners, has completed the acquisition of Enterprise Physics, a Slidell, LA-based medical and health physics company. Read more here.

 

• Xtant Medical Holdings, a Belgrade, Montana-based medical technology company focused on surgical solutions for the treatment of spinal disorders, has acquired the Coflex and Cofix product lines from Surgalign Holdings, a Deerfield, Illinois-based medical technology company. The price of the transaction was $17M. Xtant expects this acquisition to add approximately $14M in annual revenue in the near future. 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.