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www.harriswilliams.com
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
HEALTHCARE ITINDUSTRY UPDATE │ Q3 2016
0
PAGE |
www.harriswilliams.com
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
HEALTHCARE IT PRACTICE OVERVIEW
CONTENTS
WHAT WE’RE READING
KEY HEALTHCARE MACROINDICATORS
PUBLIC MARKETS
PUBLIC COMPARABLES
M&A ACTIVITY
PRIVATE PLACEMENT ACTIVITY
IPO ACTIVITY
CONTACTS
Sam HendlerManaging [email protected]+1 (617) 654-2117
Jeff BistrongManaging [email protected]+1 (617) 654-2102
Mike WilkinsManaging [email protected]+1 (415) 271-3411
Thierry MonjauzeManaging [email protected]+44 20 7518 8901
Turner BedrupManaging [email protected]+1 (804) 915-0110
Cheairs PorterManaging [email protected]+1 (804) 915-0130
James ClarkManaging [email protected]+1 (804) 915-0119
Geoffrey SmithManaging [email protected]+1 (804) 915-0195
Dan LinsalataVice [email protected]+1 (617) 654-2122
INTRODUCTION
Harris Williams & Co. is pleased to present our review of Q3 Healthcare ITactivity. This report provides commentary and analysis on current capital markettrends and merger and acquisition dynamics within the Healthcare IT industry.
We hope you find this edition helpful and encourage you to contact us directly ifyou would like to discuss our perspective on current industry trends and M&Aopportunities or our relevant industry experience.
OUR PRACTICE
Harris Williams & Co. is a leading advisor to the Healthcare IT industry. Our globalpractice includes professionals across the firm from Harris Williams & Co.’sTechnology, Media & Telecom Group and Healthcare & Life Sciences Group.
www.harriswilliams.com
PATIENTS
EMPLOYERS
INSURERS
CARE DELIVERY
ORGANIZATIONS
CLINICIANS
Patient-Facing Solutions
Care Delivery:Operational Efficiency
Care Delivery:Clinical / Acute
Care Delivery:Clinical / Non-Acute
Care Delivery:Clinical / Post-Acute
Pharma & Devices
Revenue CycleManagement
Population Health & RiskManagement
HW&Co. Healthcare IT Taxonomy
1
Please contact HW&Co. for proprietary detailed HCIT market map
HW&CO. Healthcare IT Market Map
PAGE |
WHAT WE’RE READING
2
Healthcare Informatics 9/28/2016
Boston-based startup Circulation, as Uber’s preferred healthcare platform partner, is launching a digital healthcaretransportation platform as a pilot program at several East Coast acute care and children’s hospitals. The pilot programis designed to reduce the number of missed doctor’s appointments by providing on-demand transportation options toget patients, especially disabled, elderly or low-income patients, to and from medical appointments.
Read the full article here.
UBER, CIRCULATION COLLABORATE ON HOSPITAL PILOT PROGRAM FOR PATIENT TRANSPORTATION
Healthcare IT News 9/15/2016
More than 1,300 health centers across the U.S. and its territories will be given $87 million for information technologyenhancements. The money is meant to to support health IT enhancements aimed at speeding these providers' shifttoward value-based care, through better data exchange, clinical decision support, patient engagement and more,according to HHS.
Read the full article here.
HHS GIVES $87 MILLION TO BOOST HEALTH CENTER IT
Healthcare Informatics 9/19/2016
A key House Committee held a hearing [in September] to explore how healthcare technology can createefficiencies in care delivery, improve outcomes and reduce cost.
Read the full article here.
WASHINGTON DEBRIEF: HOUSE COMMITTEE LEADERS PLEDGE HEIGHTENED ATTENTION TO HEALTH IT IN 2017
Healthcare IT News 9/27/2016
New research determined that health apps and devices with a clinical focus are more likely to grow in popularity thisyear than consumer-focused products. “Investment trends in digital health are shifting from consumer wellnessapplications to clinically driven solutions that drive better health outcomes at lower costs,” the report said. “This nextwave focuses on encouraging consumers and patients to change health-related behaviors...”
Read the full article here.
CLINICAL HEALTH APPS OUTPACING FITNESS TRACKERS AMONG INVESTORS AND INNOVATORS
EHRIntelligence 9/9/2016
In advance of the final rule for the Quality Payment Program — comprising both the Merit-based Incentive PaymentSystem (MIPS) and Alternative Payment Models (APMs) — the CMS has relaxed demands on eligible providers in 2017."In recognition of the wide diversity of physician practices, we intend for the Quality Payment Program to allowphysicians to pick their pace of participation for the first performance period that begins January 1, 2017."
Read the full article here.
CMS: PROVIDERS CHOOSE PACE FOR QUALITY PAYMENT PROGRAM IN 2017
Bloomberg 8/23/2016
Health insurance startup Oscar Insurance will reevaluate its approach to Obamacare after suffering significant lossesunder the U.S. program and will pull out of two markets next year. “The individual market isn’t working as intended andthere are weaknesses in the way it’s been set up,” CEO Mario Schlosser said in an interview. “We want to focus on themarkets we understand well, we want to focus on the markets where we have our own model in place.
Read the full article here.
INSURANCE STARTUP OSCAR QUITS TWO MARKETS, RETHINKS OBAMACARE PLANS
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
'12 '13* '14 '15
Stage 0 Stage 1 Stage 2 Stage 3
Stage 4 Stage 5 Stage 6 Stage 7
KEY HEALTHCARE MACRO INDICATORS
3
U.S. HEALTHCARE SPENDING
16.0%
17.0%
18.0%
19.0%
20.0%
-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
'08 '10 '12 '14 '16P '18P '20P '22P '24P
National Health Expenditures
HC Expediture as % of GDP
($ in trillions)
HIGH-DEDUCTIBLE HEALTH PLAN ENROLLMENT
(enrolled lives in millions)
3.2 4.5
6.1 8.0
10.0 11.4
13.5
15.5 17.4
19.7
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15
U.S. AGING POPULATION
(percent age 65 and older)
U.S. EMR ADOPTION - HOSPITAL
(percent adoption by EMRAM stage)
'07 '08 '09 '10 '11 '12 '13 '14 '15
Stage 0 Stage 1 Stage 2 Stage 3
Stage 4 Stage 5 Stage 6 Stage 7
PRIMARY CARE SUPPLY
(number of physicians in thousands)
U.S. EMR ADOPTION - AMBULATORY
(percent adoption by EMRAM stage)
*represents Q1 2014 data (2013 year-end data unavailable)
683723
794 821
57%
49%
37% 33%
'00 '05 '13 '16E
Total Physicians (in 000s) % Independent
12.6% 12.4% 13.0%
16.1%
19.3% 20.0% 20.2%
1990 2000 2010 2020P 2030P 2040P 2050P
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
PUBLIC MARKETS
44
HISTORICAL STOCK PERFORMANCE (SEPTEMBER 30, 2011 – SEPTEMBER 30, 2016)
MEDIAN TEV / 2016E EBITDA
MEDIAN REVENUE GROWTH (2015 – 2016E)
MEDIAN EBITDA MARGIN (2016E) MEDIAN EBITDA GROWTH (2015 – 2016E)
MEDIAN CAPEX / REVENUE (2016E)
MEDIAN REVENUE GROWTH (2012 – 2015)
12.7x
15.0x
21.0x
14.1x
12.1x
Clinical / Administrative
Payer-Focused
Pharma
Consumer Healthcare
Euro HCIT
5.0%
2.9%
3.3%
4.7%
3.7%
Clinical / Administrative
Payer-Focused
Pharma
Consumer Healthcare
Euro HCIT
14.0%
15.3%
18.9%
12.6%
9.3%
Clinical / Administrative
Payer-Focused
Pharma
Consumer Healthcare
Euro HCIT
23.5%
30.8%
24.8%
36.4%
25.3%
Clinical / Administrative
Payer-Focused
Pharma
Consumer Healthcare
Euro HCIT
13.6%
6.4%
4.1%
27.1%
4.4%
Clinical / Administrative
Payer-Focused
Pharma
Consumer Healthcare
Euro HCIT
14.0%
6.7%
17.6%
31.3%
10.4%
Clinical / Administrative
Payer-Focused
Pharma
Consumer Healthcare
Euro HCIT
0
50
100
150
200
250
300
350
400
450
500
Clinical & Administrative Payer-Focused Pharma Consumer Healthcare Euro HCIT S&P 500
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
VALUATION AND OPERATING METRICS
PUBLIC COMPARABLES
5
As of September 30, 2016 ($ in Millions, except per share amounts)
Consolidated Median $1,898 $1,950 87.0% $490 5.2% $94 19.3% 16.8x 13.5x
Pharma
Quintiles Transnational Holdings, Inc. $9,211 $10,890 $77.38 98.1% $5,998 4.4% $864 14.4% 12.6x 12.4x
Veeva Systems Inc 5,465 4,986 40.13 94.2% 472 23.7% 94 20.0% 52.8x 34.3x
PAREXEL International Corporation 3,603 3,855 67.74 92.5% 2,429 2.3% 365 15.0% 10.6x 10.0x
Medidata Solutions, Inc. 3,183 3,121 55.37 98.4% 421 7.2% 51 12.1% 61.2x 29.6x
Pharma Median $4,534 $4,421 96.2% $1,450 5.8% $230 14.7% 32.7x 21.0x
Consumer Healthcare
WEX Inc. $4,455 $5,407 $104.28 98.5% $879 2.8% $303 34.5% 17.9x 14.1x
WebMD Health Corp. 1,911 1,935 49.02 72.6% 671 5.4% 176 26.2% 11.0x 8.5x
HealthEquity Inc 2,048 1,899 34.93 97.6% 155 33.6% 48 30.9% 39.8x 31.5x
Benefitfocus, Inc. 1,154 1,161 38.91 86.5% 212 14.7% (34) NM NM NM
Castlight Health, Inc. 448 322 4.36 79.0% 87 15.7% (72) NM NM NM
Connecture Inc. 39 55 1.74 27.8% 88 (8.1%) (3) NM NM NM
Consumer Healthcare Median $1,532 $1,530 82.7% $184 10.1% $22 30.9% 17.9x 14.1x
Euro HCIT
CompuGroup Medical SE $2,382 $2,750 $44.75 97.9% $603 0.1% $121 20.1% 22.7x 19.3x
EMIS Group plc 819 819 12.94 71.9% NA NA NA NM NM 12.1x
NEXUS AG 324 293 20.58 93.9% 113 4.9% 21 18.7% 13.9x 11.8x
Euro HCIT Median $819 $819 93.9% $358 2.5% $71 19.4% 18.3x 12.1x
Stock Performance
Current % of LTM TEV / EBITDA
Mkt Cap TEV Price LTM High Revenue % Growth EBITDA Margin LTM 2016
Clinical / Administrative
EMR
Cerner Corporation $20,762 $20,717 $61.48 90.0% $4,657 19.8% $1,434 30.8% 14.4x 12.7x
athenahealth, Inc. 4,814 4,975 122.37 71.8% 1,012 21.2% 139 13.7% 35.8x 21.1x
Allscripts Healthcare Solutions, Inc. 2,429 3,914 13.02 82.5% 1,432 4.3% 219 15.3% 17.9x 13.5x
Quality Systems, Inc. 695 752 11.30 64.6% 493 (0.4%) 76 15.4% 9.9x 8.8x
Computer Programs and Systems, Inc. 350 501 25.86 43.7% 227 17.6% 36 15.9% 13.9x 8.8x
Median $2,429 $3,914 71.8% $1,012 17.6% $139 15.4% 14.4x 12.7x
RCM / Performance
Nuance Communications, Inc. $3,946 $5,792 $14.11 64.7% $1,947 0.2% $394 20.2% 14.7x 8.3x
Premier Inc. 1,494 4,384 31.52 83.9% 1,163 6.6% 354 30.5% 12.4x 9.4x
Advisory Board Company 1,728 2,279 42.92 78.3% 803 4.5% 222 27.6% 10.3x 11.8x
Evolent Health Inc 1,014 1,110 22.71 84.6% 192 98.6% (46) NM NM NM
Median $1,611 $3,331 81.1% $983 5.5% $288 27.6% 12.4x 9.4x
Other Administrative
Omnicell, Inc. $1,363 $1,547 $37.68 93.0% $599 23.7% $76 12.6% 20.5x 14.2x
HealthStream, Inc. 837 698 26.37 93.6% 219 4.6% 31 14.1% 22.6x 20.1x
Vocera Communications, Inc. 455 337 16.84 98.7% 113 8.3% (11) NM NM NM
Tabula Rasa Healthcare, Inc. NA NA NA NA 80 NA 10 12.2% NM NM
Median $837 $698 93.6% $166 8.3% $20 12.6% 21.6x 17.1x
Clinical / Administrative Median $1,428 $1,913 83.2% $599 7.5% $76 15.4% 14.6x 12.3x
Payer-Focused
Inovalon Holdings, Inc. $2,434 $1,964 $15.94 66.8% $453 3.5% $117 25.9% 16.8x 14.6x
HMS Holdings Corp. 1,886 1,896 22.33 93.0% 490 3.4% 109 22.3% 17.3x 15.3x
Cotiv iti Holdings, Inc. 2,712 3,463 30.08 87.5% NA NA NA NM NM 14.4x
Payer-Focused Median $2,434 $1,964 87.5% $471 3.4% $113 24.1% 17.0x 14.6x
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
M&A TRANSACTION ACTIVITY
6
Announced
Date Target Acquirer Business Description
Enterpise
Value
Implied
EV/Revenue
Implied
EV/EBITDA
Last 12 Months as of September 30, 2016 ($ in Millions)
*HW&Co. confidential transaction
*Unpublished information
10/06/16Convey Health Solutions,
Inc.New Mountain Capital Prov ider of health insurance support serv ices. * * *
10/04/16 Emmi Solutions LLC Wolters Kluwer NV Provider of medical information through media platforms. $170.0 5.9x *
09/22/16 Creehan & Co. Corp. Inovalon Holdings, Inc.Prov ider of software application platforms and
implementation of serv ices.$130.0 4.8x *
09/12/16Anthelio Healthcare
Solutions, Inc.ATOS SE
Provider of IT, health information management, EHR, and
analytics solutions to healthcare organizations. $275.0 1.4x *
09/11/16 exocad GmbH The Carlyle Group Prov ider of dental computer aided design, scanning
software, dental CAM, and dentalshare solutions.* * *
08/22/16 BioClinica, Inc. Cinven Group Ltd.Prov ider of technology enabled clinical trial
management serv ices.$1,400.0 5.6x 14.0x
08/09/16 Press Ganey Holdings, Inc. EQT Partners ABProvider of patient-experience measurement and
performance analytics solutions.$2,284.5 6.6x 21.4x
07/21/16 Connected Benefits GoHealth, LLC Provider of employee benefits management software. * * *
07/20/16 Wellcentive, Inc. Royal Philips NVProvider of population health management and data
analytics solutions.* * *
07/13/16 Imprivata, Inc. Thoma Bravo LLCProvider of HCIT authentication management security
solutions.$442.5 3.5x NA
07/13/16 Valence Health, Inc. Evolent Health, Inc. Prov ider of health system solutions. $145.0 2.0x 10.0x
06/30/16 HY Holdings, Inc. Teladoc, Inc.Prov ider of mobile patient engagement solutions to
employers.$155.8 * *
06/15/16 Navicure, Inc. Bain Capital LPProv ider of revenue cycle management solutions to
physicians, billing companies, and hospitals.* * *
06/13/16 MedHOK, Inc. The Hearst CorporationProvider of quality and compliance solutions for health
plans and accountable care organizations.* * *
06/13/16Cardon Healthcare
Holdings LLCMEDNAX, Inc.
Prov ider of third party eligibility and revenue cycle
management serv ices for hospitals. * * *
05/04/16 DocuTAP, Inc. Warburg Pincus LLCProvider of EMR, practice management, and revenue
cycle management software for urgent care.* * *
05/03/16 IMS Health Holdings, Inc.Quintiles Transnational
Holdings Inc.
Prov ider of information and analytics solutions to the
pharmaceutical and healthcare industries.$12,912.1 4.2x 17.1x
04/26/16 Withings SA Nokia CorporationProvider of digital health and wellness smart devices and
applications.$191.6 * *
04/25/16 Verisk Health, Inc. Veritas CapitalProv ider of risk assessment and decision analytics
serv ices to the global healthcare industry.$820.0 * *
04/14/16Curaspan Health Group,
Inc.Cardinal Health, Inc.
Prov ider of discharge and care transition solutions for
coordinated care.* * *
03/23/16Netsmart Technologies,
Inc.
GI Partners; Allscripts
Healthcare Solutions, Inc.
Prov ider of SaaS-based enterprise software solutions
supportingintegrated, coordinated care delivery.$950.0 * *
02/22/16 Brightree LLC Resmed Corp.Prov ider of cloud-based business process management
software to the post-acute care industry.$800.0 8.3x *
02/18/16Truven Health Analytics,
Inc.
International Business
Machines Corp.
Prov ider of analytic solutions and serv ices for healthcare
industry.$2,600.0 * *
02/05/16 CenTrak, Inc. Halma PlcProvider of real-time location systems to healthcare
facilities.$140.0 3.2x *
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
M&A TRANSACTION ACTIVITY
7
Announced
Date Target Acquirer Business Description
Enterpise
Value
Implied
EV/Revenue
Implied
EV/EBITDA
Last 12 Months as of September 30, 2016 ($ in Millions)
*HW&Co. confidential transaction
*Unpublished information
02/03/16 AlphaimpactRX, Inc. IMS Health Holdings, Inc.Provider of primary research-based insights and analytics
to healthcare and life sciences organizations.* * *
01/11/16 Healthline Media Summit Partners LLPProvider of online medically-rev iewed health and
wellness information for consumers.* * *
12/18/15 Trover Solutions, Inc. New Mountain CapitalProvider of recovery serv ices to insurance and
healthcare companies.* * *
12/18/15 Equian LLC New Mountain CapitalProvider of reimbursement analysis and payment integrity
solutions.$225.0 2.6x *
12/04/15 PDR Network LLC PSKW, LLCProvider of behavior-based prescription management
programs to the healthcare industry.* * *
12/03/15Silverlink Communications
LLCWelltok, Inc.
Provider of consumer health engagement programs to
educate and support healthcare consumers.* * *
11/25/15 Healthland, Inc.Computer Programs &
Systems, Inc.
Provider of healthcare information systems for rural and
critical access hospitals.$250.0 * *
11/02/15 MedAssets, Inc.Pamplona Capital
Management
Provider of technology-enabled performance
improvement solutions for providers and payers.$2,656.3 3.5x 12.2x
10/30/15 HealthFusion, Inc. Quality Systems, Inc.Provider of web-enabled computing software products
and communications serv ices to health care providers.$190.0 * *
10/29/15 Aesynt, Inc. Omnicell, Inc.Provider of pharmacy automation and information
management solutions for hospitals and health systems.$275.0 1.5x 13.8x
10/26/15 Atlas Medical Software Roper Technologies, Inc.Provider of cloud-based clinical connectiv ity and
process integration solutions.$48.0 * *
10/26/15 Clinisys Group Ltd. Roper Technologies, Inc.Provider of clinical laboratory information management
software solutions (d.b.a. CliniSys).$261.0 * *
10/22/15NextGen, Hospital Solutions
Div ision
QuadraMed Affinity
Corporation
Provider of hospital information systems (formerly Hospital
Div ision, NextGen Healthcare Information Systems).* * *
10/15/15 Benaissance LLC WEX, Inc.Provider of SaaS-based financial management system for
health benefits administration.$80.0 6.0x *
10/01/15 Empowered Benefits Inc. Aflac, Inc.Provider of SaaS-based private benefits exchange and
benefits administration solutions.* * *
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
PRIVATE PLACEMENT ACTIVITY
8
Last 12 Months as of September 30, 2016 ($ in Millions)
Announced
Date Target Lead Investor(s) Business Description
Round /
Stage
Money
Raised
Raised to
Date
09/27/16Azalea Health Innovations,
Inc.Undisclosed Investors
Prov ider of an electronic health records system for
medical practices. C $10.8 $22.8
09/26/16 InstaMed Holdings, Inc.Carrick Capital Partners
LLC
Provider of a payments network for the healthcare
industry.
Late-Stage
VC$50.0 $112.3
09/21/16 Catalyze, Inc. Lewis & Clark Venture
Capital
Prov ider of hosted core infrastructure required to build
modern apps for health and wellness. B $6.5 $31.1
08/30/16 Shyft Analytics, Inc.Health Enterprise Partners;
Milestone Venture Partners
Prov ider of data, analytic and mobile solutions for the
global life sciences industry. B $12.5 $31.5
08/30/16 Zillion Group, Inc.Twin Focus Equity Partners
LLC
Provider of online weight loss and related disease
prevention programs. C $28.0 $32.1
08/24/16 ClearCare, Inc. Battery VenturesProv ider of Web and mobile platform for administration of
home-care agencies. D $60.0 $75.6
08/11/16 Accolade, Inc.AH Capital Management;
Madrona Venture Group
Provider of consumer healthcare information serv ices. Late-Stage
VC$70.0 $142.2
08/09/16Wound Technology
Network, Inc.
Aldrich Capital Partners
LLC
Provider of a telehealth based platform that offers
wound care serv ices. A $40.0 $40.0
08/09/16 PreViser Corp. Undisclosed InvestorsProv ider of web-enabled diagnostic decision support
tools for dentists and dental hygienists. D $2.0 $5.2
08/08/16 Aligned Telehealth, Inc.SV Life Sciences Advisers
LLP
Provider of telemedicine and healthcare management
serv ices. A $12.0 $12.0
08/04/16 Elation EMR, Inc.Draper Fisher Jurvetson
Management
Prov ider of web-based electronic medical record
systems. B $15.0 $17.0
08/01/16 StatRad LLC UndisclosedProvider of teleradiology serv ices for radiology groups
and hospitals. NA $29.2 $29.2
07/21/16 AristaMD, Inc.Avalon Ventures;
Correlation Management
Provider of business management consulting and
advisory serv ices for the health care industry. A $11.0 $13.1
07/15/16 Medsphere Systems Corp. UndisclosedProvider of an open-source electronic health-record
system.
Late-Stage
VC$15.3 $53.5
07/13/16 Caremerge LLC GE VenturesProv ider of a mobile/web-based communication and
coordination platform. B $14.0 $21.1
07/13/16 Patient Steward, Inc.Bessemer Venture Partners,
NEA, Maverick Ventures
Prov ider of software and mobile applications for patient
record monitoring. A $15.0 $17.1
07/12/16 Avizia, Inc.Blu Venture Investors;
Middleland Capital
Prov ider of telemedicine solutions. A $11.0 $18.5
06/14/16 Procured, Inc.HCA Holdings, Inc.;
Heritage Group LLC
Provider of data-driven technologies that improve
patient care. B $10.0 $15.1
06/06/16 Valify LLCFrist Cressey Ventures LLC;
Step 5 Capital
Prov ider of purchased serv ices intelligence tools for
healthcare organizations. A $2.0 $2.8
05/26/16 Lumiata, Inc.Sandbox RLD; Khosla
Ventures; Intel Capital
Prov ider of predictive analytics around medical science
and patient data. B $10.0 $20.0
05/12/16 Umbie Health Corp. Undisclosed InvestorsProv ider of cloud-based software for dental practice
management. A $2.6 $2.8
04/08/15 Sharecare, Inc.Wellington Management
Co. LLP
Provider of a health and wellness engagement platform.D $20.0 $34.0
05/11/16 Groupe Interaction SASBpifrance, Audacia SAS,
Aquitaine Limousin Poitou
Provider of digital communication and e-learning tools to
the healthcare and pharmaceutical industries. NA $5.7 $5.7
05/02/16 WeCounsel Solutions LLCPoint Judith, Longmeadow
Capital Partners, CVH
Provider of telehealth solutions connecting mental health
prov iders to their clients online. A $3.5 $4.1
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
PRIVATE PLACEMENT ACTIVITY
9
Last 12 Months as of September 30, 2016 ($ in Millions)
Announced
Date Target Lead Investor(s) Business Description
Round /
Stage
Money
Raised
Raised to
Date
04/15/16 Proteus Digital Health, Inc. Undisclosed InvestorsProv ider of wearable digital wellness and medication
adherence solutions.
Late-Stage
VC$50.0 $419.7
04/13/16 CareDox, Inc.Prolog Ventures, TEXO
Ventures
Prov ider of care coordination solutions for schools to
manage and share medical information.
Late-Stage
VC$2.8 $10.7
04/13/16 OnShift, Inc. Health Velocity CapitalProv ider of staff scheduling and labor management
software solutions to the post-acute sector.D $18.0 $31.0
04/12/16 Livongo Health, Inc.Merck, Cowen Pvt. Inv.,
Sapphire Ventures
Prov ider of consumer digital health and diabetes
coaching tools.C $44.5 $84.5
04/14/16 Quartet Health, Inc.GV (formerly Google
Ventures)
Prov ider of cloud-based behavioral healthcare
collaboration plaform.B $40.0 $47.0
03/11/16 Connecture, Inc. Francisco PartnersProv ider of cloud-based consumer shopping, enrollment,
and retention platform for health plans.PIPE NA $111.8
02/25/16 Viv ify Health, Inc. UPMC Health SystemProvider of cloud-based mobile healthcare platform for
remote patient monitoring and v irtual care.B $2.0 $24.0
02/29/16 Health Catalyst LLCNorwest Venture Partners,
UPMC Health System
Provider of warehousing, analytics, and outcomes
improvement solutions to healthcare organizations.
Late-Stage
VC$70.0 $222.0
01/15/16Babylon Healthcare
Serv ices Ltd.Investment AB Kinnevik
Prov ider of a mobile appointment scheduling and clinical
record access solution.A $25.0 $25.0
01/12/16 NantHealth, LLC Return InvestorsProv ider of cloud-based intelligent clinical operating
systems for reducing administrative time and tasks.
Late-Stage
VC$52.5 $764.5
01/12/16 Syapse, Inc. Ascension VenturesProv ider of precision medicine software solutions to
academic and community healthcare providers.C $25.0 $39.5
12/31/15 MonDocteur SAS Lagardere SCAProvider of an online medical consultation platform to the
French healthcare market.NA NA $13.0
12/17/15 WellDoc, Inc.Samsung Ventures, Merck
Global Health Innovation
Provider of consumer-focused chronic disease
management solutions.B $22.0 $47.7
12/07/15 Twine Health, Inc. Khosla Ventures Prov ider of cloud-based medical consultation software. A $6.8 $7.3
12/07/15 Welltok, Inc. Return InvestorsProv ider of healthcare "gaming" and patient
engagement solutions.
Late-Stage
VCNA $192.0
12/02/15 eVariant, Inc. The Goldman Sachs GroupProvider of SaaS-based CRM and marketing automation
software for hospitals and health systems.C $42.3 $68.6
11/12/15 HY Holdings, Inc. Frontier CapitalProv ider of personalized online brain-based health
programs for employees.
PE Growth /
ExpansionNA $33.0
10/14/15 Lyra Health, Inc.Greylock Partners,
Venrock
Provider of behavioral health analytics and care
coordination software.A $35.0 $39.1
10/14/15 DrFirst.com, Inc. The Goldman Sachs GroupProvider of medication adherance, e-prescribing, and
care coordination solutions.
PE Growth /
Expansion$25.0 $42.0
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
PAGE |
IPO ACTIVITY
10
Last 18 Months as of September 30, 2016 ($ in Millions)
Enterprise Value
Offer Date Issuer Description Raised Offer Date Today % Change
09/28/16 Tabula Rasa Healthcare, Inc.Provider of personalized medication therapy management and pharmacy
serv ices to reduce medication risk. $59.3 $299.1 $271.2 (9.3%)
05/25/16 Cotiv iti Holdings, Inc. Provider of analytics-driven healthcare payment accuracy solutions. $245.8 $2,414.3 $3,489.0 44.5%
06/04/15 Evolent Health, Inc. Provider of healthcare delivery and payment solutions in the United States. $224.8 $788.5 $1,153.5 46.3%
05/20/15 Press Ganey Holdings, Inc.Provider of patient experience and caregiver performance measurement
and advisory solutions.$255.9 $1,876.6 $2,297.7 22.4%
HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
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REPRESENTATIVE HW&CO. HEALTHCARE TECHNOLOGY TRANSACTIONS
11
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HEALTHCARE IT INDUSTRY UPDATE | Q3 2016
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HEALTHCARE IT INDUSTRY UPDATE | Q3 2016