MARKET ANALYSIS

Healthcare M&A Weekly 11.6.23

A Look at Recent Transactions Shaping the Future of Healthcare

This week's article provides a summary of recent healthcare M&A news for November 6, 2023. 

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 mergers, acquisitions, and investments shaping the future of healthcare.

To view previous healthcare M&A activity, please review last week's post: Healthcare M&A Weekly - October 30, 2023.

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• Aileron Therapeutics, a biopharmaceutical company, has acquired Lung Therapeutics, a privately held biopharmaceutical company focused on developing novel therapies for the treatment of orphan pulmonary and fibrosis indications that have no approved or limited effective treatments. Read more about the acquisition here.

 

• American Health Staffing Group (AHSG), an Edmond, OK-based provider of healthcare talent and technology solutions, has acquired PediaStaff, a Tupelo, MS-based provider of pediatric therapy and educational staffing services. AHSG is a portfolio company of private investment firm Littlejohn & Co. Click here for more on the acquisition.

 

• AMETEK, an electronic instruments and electromechanical devices maker, has reached an agreement to acquire Paragon Medical, a provider of highly engineered medical components and instruments, from affiliates of American Securities LLC in an all-cash transaction valued at approximately $1.9B. Read the press release here.

 

• Apple Homecare Medical Supply, a pediatric respiratory and enteral supply provider, has been acquired by Pediatric Home Respiratory Services, an independent home healthcare provider. Learn more about the acquisition here.

 

• ARC Health, a Thurston Group portfolio company, a provider of mental health care services, has acquired peer GROW Counseling. View the announcement here.

 

• Eargo, Inc., a medical device company on a mission to improve hearing health, announced that it has entered into a definitive merger agreement, pursuant to which an affiliate of Patient Square Capital has agreed to acquire all of the outstanding shares of Eargo common stock not currently owned by Patient Square for $2.55 per share in cash. Eargo has a market cap of $53.74M. Read more about the merger here.

 

• The Ensign Group, a provider of skilled nursing and rehabilitative care services and real estate, has acquired Champions Healthcare. Champions Healthcare at Willowbrook is a healthcare campus consisting of a 98-bed skilled nursing facility and a 144-bed assisted living facility located in Houston, TX. Click here to learn more.

 

• Ergotron, a St. Paul, MN-based provider of ergonomic products for healthcare and workspaces backed by Sterling Group, acquired Murfreesboro, TN-based Enovate Medical, a manufacturer of nurses' workstation solutions and services. Read more about the acquisition here.

 

• First Stop Health, a provider of digital healthcare services, backed by Sverica Capital Management, has acquired SentryHealth Inc., an employee health and well-being platform. Learn more about the acquisition.

 

• Gynesonics, a women's healthcare and medical device company, has secured an incremental $42.5M in financing, totaling $67.2M including the initial financing obtained in April 2023. Click here to learn more about the financing.

 

• Havencrest Capital Management announced the acquisition of Independence 4 Seniors, a Hinsdale, IL-based home care provider, the third deal under the private equity firm's Avid Health at Home platform. Read more here. Additionally, Havencrest Capital Management, announced its acquisition of Focus Staff Services, a provider of temporary workforce solutions in the healthcare marketplace. Read more here.

 

• IKS Health, a healthcare IT-services company, has acquired AQuity Solutions, a clinical documentation, medical coding, and mid-revenue cycle software firm, for $200M. Learn more about the acquisition here.

 

• Imagine Pharma, a biotech company focused on furthering the commercialization opportunities related to its novel IMG-1 polypeptide, has raised a $32M Series A round, with an initial traunch of $10M, bringing its total funding to date to $40M. Read the press release here.

 

• Inari Medical, Inc, a medical device developer, has entered into a definitive agreement to acquire LimFlow, a privately held pioneer in limb salvage for patients with chronic limb-threatening ischemia (CLTI). Under the terms of the agreement, Inari will pay $250M in cash at closing and LimFlow will be eligible to receive additional cash payments based on certain commercial and reimbursement milestones. View the announcement here.

 

• Neuros Medical, a medical device company, has secured a $25M commitment in growth capital from Trinity Capital. The growth capital will enable Neuros Medical to augment the recent equity raised and further scale operations to assist with their commercial launch. Click here to learn more.

 

• The Pennant Group, a home health, hospice and senior living company, has acquired Guardian Hospice and Guardian Hospice of Oklahoma, which provides skilled hospice services in Oklahoma. Read more about the acquisition here.

 

• Terremoto Biosciences, a biotechnology company, has raised $175M in a Series B round. This financing brings the total capital raised by the company to $250M. Learn more about the financing here.

 

• United Therapeutics Corp, a Silver Spring, MD-based biopharmaceutical company, has agreed to acquire Miromatrix Medical, an Eden Prairie, MN-based biotechnology company. The purchase price for Miromatrix consists of $3.25 per share in cash at closing (an aggregate of around $91M) and an additional $1.75 per share in cash upon the achievement of a clinical development milestone by 31 December, 2025. Read the announcement here.

 

• Viome, a health intelligence company, announced that it has acquired Naring Health, a digital health and wellness company. Click here to learn more about the acquisition.

 

• York Private Equity has made a strategic growth investment in Comprehensive Rehab Consultants, a physiatry, psychiatry, and care transition group in the United States. Learn more here.

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Transactions outlined in this summary highlight some of the key trends shaping the future of healthcare. Get the latest industry news from TripleTree every week.

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.