Merger and acquisition activity in healthcare information technology remained strong in 2015, according to data from firms that track M&A trends in the industry.
Investor appetite for health IT companies continued at a ravenous pace, according to Raj Prabhu, CEO and co-founder of Mercom Capital Group, a high tech communications and research firm.
Combinations of companies through mergers and acquisitions totaled nearly $6 billion in 2015, representing 180 deals, according to data from Rock Health, a San Francisco-based venture fund that concentrates on the digital health industry. Rock Health estimates that M&A activity nearly doubled in volume this year, compared with last year.
Mercom Capital provided its list of top merger and acquisition deals through the first three quarters of 2015. Its report on the fourth quarter and the full year will be released soon.
Top merger and acquisition deals for 2015, in order of size, were:
Merge Healthcare, $1 billion. IBM Corp., an American multinational technology and consulting corporation, acquired Merge Healthcare, a provider of medical imaging management, processing, and interoperability solutions, for approximately $1 billion in the third quarter of the year.
Altegra Health, $910 million. Emdeon, a provider of revenue and payment cycle management and clinical information exchange solutions, acquired Altegra Health, a provider of technology-enabled payment solutions that enable health plans and other healthcare providers to generate, analyze and submit the data needed to successfully manage member care and ensure appropriate reimbursement, for about $910 million in cash in Q3.
Virtual Radiologic Corp., $500 million. MEDNAX, a national medical group that provides neonatal, maternal-fetal and pediatric physician subspecialty services as well as anesthesia services, acquired Virtual Radiologic Corporation (vRad), a provider of teleradiology and telemedicine services, for $500 million in Q2.
MyFitnessPal, $475 million. Under Armour, a sports clothing, footwear and accessories company, acquired MyFitnessPal, a developer of a nutrition and fitness platform that enables users to track their health goals and provides nutritional information, for $475 million in Q1.
CECity, $400 million. Premier, a healthcare improvement company, acquired CECity, a provider of a cloud-based data analytics platform, providing performance management, pay-for-value reporting and professional education, for $400 million in Q3.
Studer Group, $325 million. Huron Consulting, a provider of healthcare consulting services and strategic organizational software, acquired Studer Group, a provider of healthcare consulting services and software, for $325 million in Q1.
naviHealth (71%), $290 million. Cardinal Health, a healthcare services company, acquired 71 percent of naviHealth, a provider of post-acute care coordination and management of bundled payment programs, for approximately $290 million in Q3. The transaction will be funded through existing cash on hand.
Runtastic, $240 million. Adidas, a multinational company that designs and manufactures sports shoes, clothing and accessories, acquired all outstanding shares of Runtastic, a developer of a fitness app for about $240 million. The transaction was signed and closed in the third quarter of the year.
Avalere Health, $140 million. Inovalon, a provider of cloud-based analytics and data-driven intervention platforms to the healthcare industry, acquired Avalere Health, a provider of data-driven advisory services and business intelligence solutions to the pharmaceutical and life sciences industry, for $140 million in Q3.
Acclaris, $140 million. Towers Watson, a global professional services company, acquired Acclaris, a provider of SaaS-based technology and services for consumer-driven healthcare and reimbursement accounts, for $140 million in Q2.
SHL Telemedicine, $130 million. Shanghai Jiuchuan Investment, a Shanghai-based private investment firm, agreed to acquire 100 percent of the shares of SHL Telemedicine, a developer of advanced personal telemedicine solutions, at a valuation of $130 million.
Premier Healthcare Exchange, $130 million. Performant Financial Corp., a provider of technology-enabled recovery and related analytics services in the United States, acquired Premier Healthcare Exchange, a provider of advanced cost management solutions for commercial health plans and third party administrators, for $130 million in Q1.
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