Last Month in Digital Health M&A: December 2019
During last month, we have caught the following digital health M&A deals…
Dedalus Holding to acquire part of Agfa HealthCare’s healthcare IT business for 975M Euro. The Business consists of the Healthcare Information Solutions and Integrated Care activities, as well as the Imaging IT activities to the extent that these activities are tightly integrated into the Healthcare Information Solutions activities. This is the case mainly in the DACH region, France and Brazil. The proposed transaction is subject to customary employees’ consultations, regulatory approvals and closing conditions. It is expected that, upon positive conclusion of the negotiations, the transaction will be completed in the course
of Q2 2020. • read more.
Astellas to acquire Audentes Therapeutics for $3 billion. The acquisition of Audentes represents a key step in the expansion of the Astellas Focus Area approach, under which Astellas strives to create innovative medicines for diseases with high unmet medical needs by identifying unique combinations of biology and therapeutic modality/technology based on emerging science. In addition to the four Primary Focus Areas in which Astellas currently prioritizes its investment, with the acquisition of Audentes, the company is adding a fifth Primary Focus Area in Genetic Regulation, under which gene therapy will be a key driver of the company’s future growth. • read more.
Waystar acquires Recondo Technology, a pioneer of innovative revenue cycle automation solutions. Recondo brings additional artificial intelligence and machine learning technologies to Waystar’s broad portfolio of solutions. The capabilities include patient access technology that addresses inefficiencies surrounding price transparency, eligibility and pre-authorization processes, as well as business office technology that automates status checks for outstanding claims, reducing manual work. Merging Recondo and Waystar’s data will drive heightened accuracy and speed for all solutions, such as increasing the rate at which providers can determine if a patient has insurance coverage or send a prior authorization to a payer. • read more.
Corrona acquires patient experience company HealthiVibe. HealthiVibe complements and strengthens Corrona’s strong presence in disease registries by providing market-leading expertise in supporting innovative, evidence-based patient engagement initiatives across the product lifecycle. With projects in over 60 countries and more than 90 indications, HealthiVibe also brings valuable global experience and breadth to Corrona… In addition to her title of CEO of HealthiVibe, Abbe will also be taking on the newly created role of Chief Patient Officer at Corrona. • read more.
InSight Telepsychiatry, Regroup merge to become largest telepsychiatry provider in US. The merger between InSight and Regroup brings together a robust network of providers and an impressive group of clinical and executive leaders with extensive experience and expertise across different care settings and patient populations for underserved individuals and communities. This joint effort will allow for increased delivery of mental health services across the country in response to a nationwide shortage of specialists coupled with a rising need for behavioral health services. • read more.
ESO acquires Clinical Data Management to extend its offering in trauma registry market. By combining the assets, expertise and customer base of Clinical Data Management with newly acquired Digital Innovation and Lancet Technology, ESO will have the largest portfolio of state trauma registries in the United States and will deliver a world’s first — the ability to see time-sensitive emergencies and patient data from the first 911 call for help all the way through a patient leaving the hospital… Clinical Data Management has a 30-year history as an innovative leader in trauma registry software. In addition to the company’s flagship product, TraumaBase, ESO will also acquire all of Clinical Data Management’s trauma-related software products, including the company’s state trauma registry and customers. • read more.
VerityStream acquires CredentialMyDoc for approximately $9M in cash. CredentialMyDoc offers Software-as-a-Service solutions that are intuitive, easy to use, and fast to implement, especially in ambulatory care settings. Its solutions are used to credential providers, enroll providers with payers for reimbursement, and apply and maintain privileges. The acquisition of CredentialMyDoc bolsters VerityStream’s leadership position in the outpatient facility market segment, which is especially important as patients are increasingly seeking care from a diverse and growing array of same-day service providers. • read more.
VirTrial acquires SnapMD to bolster its virtual care management platform. The acquisition bolsters VirTrial’s capabilities with access to SnapMD’s telemedicine platform and technical expertise. In addition, the relationship enables integration of additional features and capabilities into VirTrial’s Virtual Care Management (VCM) platform to further establish VirTrial as the dominant global decentralized clinical trial (DCT) solution in the market. Furthermore, the acquisition supports VirTrial’s goal of making hybrid decentralized clinical trials seamless for sponsors, sites, and patients. In that sense, new enhancements available via SnapMD technology will improve functionality and further simplify user experience. • read more.
1-800 Contacts to acquire at-home eye exam start-up 6over6 Vision. 6over6 has created some of the most advanced consumer vision technology available, enabling customers to perform the most accurate at-home vision tests using a mobile app or computer, alongside the development of future solutions that will transform the global vision care market. Expected to close before the end of December 2019, the acquisition marks a critical turning point for both brands and the industry at-large, leveraging the technology of 6over6 and 1-800 Contacts’ proven heritage as a pioneer in the vision space. • read more.
Medtronic acquires behavior tracking startup Klue. Klue has developed technology that automatically recognizes when a person is eating as well as how fast and how much that person consumes. By using gesture sensing via activity trackers combined with analytics technology, Klue has developed fine motor artificial intelligence software that can detect meals and provide insights into user eating behaviors. Because food consumption is intrinsically related to insulin requirements for people living with diabetes, the ability to automate meal identification along with the corresponding insulin delivery is an unmet need that could greatly simplify living with this disease… The transaction is expected to be neutral to fiscal year 2020 earnings per share and meet Medtronic’s long-term financial metrics for acquisitions. Additional terms of the transaction were not disclosed. • read more.
Corporate fitness platform Gympass acquires AI startup Flaner. With this acquisition, Gympass will open its third product development hub in Lisbon, Portugal. Gympass is doubling down on its dedication to use AI and Machine Learning to create personalized experiences that will help users get active. The Flaner technology and product development team will be crucial to creating a more personalized and social experience for Gympass users, corporations, and Fitness Partners. As for the new Tech Hub, it includes current Flaner employees and will quickly expand to a team of up to 50. Both the recently opened New York Tech Hub and the Lisbon Tech Hub will focus on leveraging AI to improve user experiences across Gympass’ three-sided marketplace. • read more.
caresyntax to acquire operating room analytics provider Syus. This acquisition extends caresyntax’s global footprint to more than 7,000 operating rooms, including over 1,100 in the United States, and further enhances the company’s capabilities in AI and the use of real-world evidence with the addition of data from over 9 million surgical cases… Syus delivers easy-to-use, actionable insights for health systems, medical device vendors and anesthesia groups, as they look for ways to better leverage their OR data and improve overall decision making, efficiency and performance. • read more.
NextGen Healthcare to acquire OTTO Health to expand patient engagement capabilities with integrated virtual visits. OTTO virtual visits provide both the convenience and integrated approach that patients and providers demand. The solution is device agnostic, doesn’t require the download or install of a separate app, and patients have multiple options for scheduling an appointment, including directly through the patient portal. The proposed acquisition is expected to close this month, subject to the satisfaction of closing conditions. Detailed terms of the acquisition have not been disclosed. • read more.
J&J to buy remaining stake in Verb Surgical from Verily. Bolstering its Ethicon unit, which makes surgical equipment, J&J in 2015 formed an independent company called Verb Surgical with Verily to create smaller, smarter and less costly robotic-assisted systems for surgery… The deal for Verb Surgical is expected to close in the first half of 2020, J&J said without disclosing deal terms. J&J pushed further into the surgical robotics space with its $3.4-billion acquisition of Auris Health earlier this year. The deal gave J&J access to the privately held company’s surgical robotic scope used in respiratory procedures and the detection of lung cancer. • read more.
Please note that this list represents only the digital health M&A deals that caught our eye in the past month. There may be other deals we are not aware of or those which we don’t think fit the “digital health” category.