MARKET ANALYSIS

Healthcare M&A Weekly 5.1.23

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 OMS, a Texas-based oral and maxillofacial surgery managed service organization (MSO), has acquired Oral Surgery Associates and Peninsula Center Dental Implants & Oral Surgery. Read more here.

 

• American Vascular Associates (AVA), a network of outpatient vascular and endovascular centers based in Palm Harbor, Florida, was recapitalized by Petra Capital Partners and Canopy Capital Partners. AVA has close to 20 outpatient vascular centers, partnering with ~100 interventional cardiologists. Read more here.

 

• Assertio Holdings [NASDAQ: ASRT], an IL-based specialty pharmaceutical company, has agreed to acquire Spectrum Pharmaceuticals [NASDAQ:SPPI], in an all-stock and contingent value rights transaction, for up to $291M. Read more here.

 

• Bluestream Health, a New York City-based telehealth platform for healthcare providers and hospitals, has been acquired eVisit, an Arizona-based telemedicine software company backed by Goldman Sachs. eVisit empowers over 100 healthcare delivery organizations spanning 2,000+ sites of care with the ability to service millions of encounters annually. Read more here.

 

• Calibre Scientific, a Los Angeles-based provider of life science reagents, instruments, and other consumables, has acquired Greenwood Products, a New Jersey-based manufacturer and provider of laboratory supplies and consumables. Read more here.

 

• Cardiovascular Associates of America, backed by Webster Equity, has merged with Novocardia, backed by Deerfield Capital. The merger will result in a combined company with a presence in eight states, eleven partner groups operating across 100+ locations, and 200+ cardiovascular partner physicians serving 400,000+ active patients. Read more here.

 

• DifGen Pharmaceuticals LLC, a Princeton, New Jersey-based pharmaceutical development company, acquired Aveva Drug Delivery Services Inc., a Florida-based drug delivery system developer. Aveva has over 300 employees and generated ~ $100M in sales during the last fiscal year. Read more here.

 

• Eli Lilly and Company [NYSE:LLY] has agreed to divest BAQSIMI to Amphastar Pharmaceuticals, for $500M in cash. The transaction includes an additional $125M upon the one-year anniversary of closing, along with performance-linked earnouts of up to $450M. Read more here.

   

• Frontier Dental Laboratories, a California-based DSO backed by O2 Investment Partners, has invested in Friendship Dental Laboratories, a full-service dental laboratory based in Rosedale, MD. Read more here.

   

• NeoLight, an Arizona-based newborn medical device company, has agreed to acquire InterVIEW Medical Systems, a provider of software as a service to physicians managing retinopathy. Read more here.

 

• Kaiser Foundation Hospitals is acquiring Geisinger Health and launching Risant Health. Geisinger comprises 10 hospitals, as well as a health plan with more than half a million members. The health system has 25,000 employees and more than 1,700 physicians. Should the transaction between Kaiser and Geisinger go through after review by federal and state regulators, the combined health system would generate more than $100B in revenue. Read more here.

 

• Nuvo Group Ltd., the creators of INVU, an FDA-cleared remote pregnancy monitoring platform, and LAMF Global Ventures Corp I [NASDAQ:LGVC], a special purpose acquisition company, have entered into a non-binding letter of intent for a proposed business combination that would result in the combined entity being publicly listed. The Company is being valued at ~$300M. Read more here.

 

• Picard Medical has agreed to go public via a merger with Altitude Acquisition Corp. (ALTU) [NASDAQ: ALTU], a US-based blank check firm, fetching Picard a pre-money enterprise value of $480M. Read more here.

 

• Probo Medical, a provider of medical imaging equipment and backed by Avista Capital, has acquired Ultra Select Medical, a South Carolina-based provider of ultrasound equipment. Read more here.

 

• Quest Diagnostics [NYSE:DGX], to acquire Haystack Oncology, a Baltimore, MD-based oncology company, for $450M; $300M in cash along with additional performance-linked earnouts of up to $150M. Read more here.

 

• Schweiger Dermatology Group, the largest dermatology practice in the Northeast, has announced the acquisition of Windsor Dermatology in East Windsor, New Jersey. Read more here.

 

• Tegria, a healthcare consulting and technology services company, acquired Sisu Healthcare IT Solutions, a MEDITECH certified hosting and services firm headquartered near Duluth, Minn. Read more here.

   

• Virtua Health has agreed to acquire Reconstructive Orthopedics, an orthopedic practice with eight locations and 300 employees. 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.