Healthcare Information Technology€¦ · Share Price 52 Week High - Low Market Cap Enterprise...
Transcript of Healthcare Information Technology€¦ · Share Price 52 Week High - Low Market Cap Enterprise...
1 HEALTHCARE INFORMATION
TECHNOLOGY
M A R K E T M O N I T O R
S P R I N G 2 0 1 4
Healthcare Information Technology
2 HEALTHCARE INFORMATION
TECHNOLOGY
Contents
MARKET OVERVIEW 3
PUBLIC HCIT VALUATION METRICS 5
HCIT SECTOR TRANSACTION ACTIVITY 7
MOSS ADAMS OVERVIEW 14
SELECT MOSS ADAMS CAPITAL TRANSACTIONS 18
3 HEALTHCARE INFORMATION
TECHNOLOGY
Despite ICD-10 Delay, Favorable Industry Dynamics Still Driving Growth Delay in ICD-10
At the end of March, the Senate approved a measure to delay ICD-10 implementation as part of the “doc fix” legislation, pushing the
timeframe back by one year. While this additional time will be helpful to those providers that were not yet prepared for the transition, it
may prove costly to those that were.
Population Health
Population Health has emerged as one of the most popular buzzwords around the HCIT industry lately. While some companies have
introduced new products to address the movement towards a value-based care system, others have opted to do it via acquisitions.
Life sciences software and IT services spend
The software and IT services spend in the life science industry is showing continuous growth with the trend expected to continue as most
processes in the industry still need to be upgraded to newer software. Furthermore, despite the accelerated growth in the global life
sciences market, companies are facing margin pressure given the changes in their pricing, reimbursement challenges and rising costs of
compliance.
Global Life Sciences IT Software & Services Spend
Sources: CMS, Gartner, industry articles and Moss Adams Capital analysis.
$4,541 $4,863 $5,182 $5,514 $5,900 $6,305
$7,410 $7,802
$8,216 $8,643
$0
$2,000
$4,000
$6,000
$8,000
$10,000
2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E
$ in millions
Life Science MDM Spend
Life Science Content Management Spend
Life Science CRM Spend
4 HEALTHCARE INFORMATION
TECHNOLOGY
U.S. middle market M&A transaction volume in Q1 2014 rose 28% from one year ago but stayed flat compared to the prior quarter.
In deal value terms, U.S. middle market M&A activity in Q1 2014 grew 25% from a year earlier but dropped 22% compared to the prior quarter.
Q1 2014 EBITDA multiples of middle market transactions fell slightly from the prior quarter but increased significantly from year ago levels.
EBITDA valuation levels of middle market deals remain at high levels last seen in Q4’10.
Q1’14 EBITDA margins of reportable transactions showed higher levels vs both last year and quarter.
Middle Market M&A: Continued Flat Volumes, High Deal Valuations
U.S. Middle Market M&A 1 U.S. Middle Market M&A Valuations 2
1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million. 2) Middle market M&A includes transactions with disclosed EBITDA, where EV < $500 million and EV/EBITDA < 10x. Note: transactions with disclosed EBITDA represent <5% of all transactions. Source: S&P Capital IQ.
1,828 1,895
2,011
2,281
2,855 2,953 2,927
3,080 2,984
3,682 3,681
3,852
3,539 3,453
3,622
3,986
3,134
3,319
4,092 4,054 3,997
$21$25
$28
$36$32
$43
$56 $55
$47
$71 $72$70
$52$56
$52
$66
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$71
$55
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009 2010 2011 2012 2013 2014
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Number Value
5.7x 5.6x 5.7x
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6.4x
7.0x6.7x 6.8x 6.8x 6.9x
5.9x
6.4x6.2x 6.2x 6.4x
6.0x6.2x
7.2x7.0x
18.1%
10.7%11.3%
16.7%
15.0%14.2%
15.3%14.5%
16.7%16.6%16.9%
15.0%
12.4%13.0%
14.6%
16.7%
15.3%14.8%13.7%
10.6%
17.0%
0%
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5 HEALTHCARE INFORMATION
TECHNOLOGY
Healthcare IT stocks took a hit toward the end of the first quarter as several companies announced disappointing numbers and a bill to
delay ICD-10 compliance was passed in the Senate. Despite this pullback, the HCIT index has still outperformed the broader market
over the last three years and all three subcategories within the HCIT sector (Practice Management Software, Data
Analytics/Internet/Niche, and Pharma/Clinical Trials) are still expected to outperform the broader market over the next 12 months.
Note: The Healthcare IT Index is composed of the public companies included on page 5. Source: S&P Capital IQ.
Historical Performance: Healthcare IT vs. S&P Next 12 Months: Estimated Sales & EBITDA Growth
Despite Sell-off, HCIT Still Expected to Outperform the Overall Market
4.5% 5.0%
13.2% 15.3%12.8%
48.8%
109.2%
15.5%
0%
20%
40%
60%
80%
100%
120%
S&P 500 PMS Data Analytics/Internet/ Niche
Pharma/ ClinicalTrials
Est. NTM Sales Growth
Est. NTM EBITDA Growth
HCIT Index
51%
S&P 500
38%
-25%
0%
25%
50%
75%
100%
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TECHNOLOGY
Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 50x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St. analysts.
Selected HCIT Public Company Valuations
Source: S&P Capital IQ.
($ in millions, except per share amounts)
5/6/14 TTM Data EV Multiple
Company Name
Share
Price
52 Week
High - Low
Market
Cap
Enterprise
Value Sales EBITDA
EBITDA
Margin Sales EBITDA
TTM
Sales
TTM
EBITDA
NTM
Sales
NTM
EBITDA
HCIT - Practice Management Software
Cerner Corporation $50.15 $63.07 - $45.81 $17,220 $16,349 $2,939 $774 26.3% 17.0% 59.8% 5.6x 21.1x 4.8x 13.2x
Allscripts Healthcare Solutions, Inc. 15.06 19.68 - 12.54 2,702 3,201 1,373 10 0.7% 4.3% 2155.3% 2.3x NM 2.2x 14.4x
MedAssets, Inc. 22.02 26.58 - 16.31 1,343 2,119 678 202 29.8% 5.2% 18.4% 3.1x 10.5x 3.0x 8.9x
Omnicell, Inc. 25.52 30.33 - 17.52 933 825 395 58 14.6% 10.1% 48.8% 2.1x 14.3x 1.9x 9.6x
Quality Systems Inc. 14.84 24.15 - 14.10 894 800 441 73 16.5% 5.0% 23.3% 1.8x 11.0x 1.7x 8.9x
Computer Programs & Systems Inc. 61.65 71.89 - 47.23 688 659 203 56 27.3% 4.4% 14.5% 3.2x 11.9x 3.1x 10.4x
Merge Healthcare Incorporated 2.20 4.71 - 1.99 209 418 219 25 11.6% (0.9%) 66.8% 1.9x 16.4x 1.9x 9.8x
Median $825 $441 $58 16.5% 5.0% 48.8% 2.3x 13.1x 2.2x 9.8x
Average $3,482 $893 $171 18.1% 6.4% 341.0% 2.9x 14.2x 2.7x 10.7x
HCIT - Data Analytics/Internet/Niche
athenahealth, Inc. $109.21 $206.70 - $82.01 $4,133 $4,227 $632 $58 9.2% 23.8% 136.0% 6.7x NM 5.4x 30.7x
WebMD Health Corp. 42.42 51.41 - 25.18 1,603 1,777 536 87 16.2% 9.2% 82.3% 3.3x 20.5x 3.0x 11.2x
Healthstream Inc. 23.80 39.77 - 20.76 656 554 141 24 17.0% 24.6% 7.8% 3.9x 23.2x 3.2x 21.5x
Vocera Communications, Inc. 12.29 19.71 - 11.78 309 187 105 (11) NA 7.2% NA 1.8x NA 1.7x NA
Streamline Health Solutions, Inc. 4.95 8.50 - 4.70 86 102 29 1 2.1% 13.2% 860.7% 3.6x NM 3.1x 17.3x
Median $554 $141 $24 12.7% 13.2% 109.2% 3.6x 21.8x 3.1x 19.4x
Average $1,370 $289 $32 11.1% 15.6% 271.7% 3.9x 21.8x 3.3x 20.2x
HCIT - Pharma/Clinical Trials
Catamaran Corporation $41.20 $60.93 - $40.52 $8,523 $10,133 $16,475 $725 4.4% 30.6% 15.5% 0.6x 14.0x 0.5x 12.1x
PAREXEL International Corporation 44.60 57.25 - 37.53 2,537 2,535 1,892 262 13.8% 9.1% 13.5% 1.3x 9.7x 1.2x 8.5x
Charles River Laboratories International, Inc. 50.96 62.50 - 40.55 2,465 2,949 1,174 256 21.9% 12.4% 15.6% 2.5x 11.5x 2.2x 9.9x
Medidata Solutions, Inc. 36.61 68.21 - 32.63 1,980 1,991 290 26 8.9% 23.5% 235.4% 6.9x NM 5.6x 23.1x
Simulations Plus, Inc. 6.07 7.09 - 3.91 98 88 10 4 37.6% 15.3% NA 8.5x 22.6x 7.4x NA
Median $2,535 $1,174 $256 13.8% 15.3% 15.5% 2.5x 12.7x 2.2x 11.0x
Average $3,539 $3,968 $255 17.3% 18.2% 70.0% 4.0x 14.4x 3.4x 13.4x
NTM Est. Growth
7 HEALTHCARE INFORMATION
TECHNOLOGY
The first quarter of 2014 ended with M&A activity continuing
the upward trend that started in the second quarter of last
year and showed a significant improvement over the same
period one year ago. Signs continue to point toward an
increase in activity within the fragmented landscape.
EV/EBITDA multiples for public HCIT companies dropped
significantly as stocks sold-off in response to the news of
another delay in ICD-10 compliance. However, the index
continues to trade at a significant premium to the S&P 500.
HCIT Sector M&A Transactions & Public Valuations
Source: S&P Capital IQ.
HCIT M&A Deal Volume HCIT Public Market Valuations
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8 HEALTHCARE INFORMATION
TECHNOLOGY
Recent HCIT M&A Transactions
Sources: S&P Capital IQ. Public companies in bold.
$ in millions
Close Transaction
Date Acquirer/Investor Target Target Description Value
Pending Joerns Healthcare Inc. RecoverCare, LLC Distributes safe patient handling solutions. --
Pending Connolly, LLC iHealth Technologies, Inc. Provides payment policy management solutions. --
Pending Cytta Corp. Visual Telecommunications Network, Inc. Provides telehealth and telemedicine solutions. --
05/05/14 Huron Consulting Group Inc. Vonlay, LLC Provides healthcare information technology consulting services. --
04/28/14 Truven Health Analytics Inc. Fortel Analytics LLC Deploys predictive analytic and risk management solutions for healthcare payers. --
04/28/14 Press Ganey Associates, Inc. Dynamic Clinical Systems, Inc. Provides patient-reported outcomes platform for clinical information management. --
04/28/14 Accolade, Inc. DocVue, Inc. Develops software that allows consumers to engage with healthcare providers. --
04/24/14 Zynx Health Incorporated CareInSync Corporation Provides software solutions for communication between healthcare providers. --
04/17/14 Nuance Communications, Inc. AccelaRAD, Inc. Designs and delivers medical image cloud computing solutions. --
04/16/14 Symphony Technology Group MD Datacor, Inc. Develops and delivers health care quality management solutions. --
04/14/14 Alpha II Software Solutions Unicor Medical, Inc. Operates as a coding software developer and publisher of ICD coding materials. --
04/14/14 Public Consulting Group, Inc. Hubbert Systems Consulting, Inc Provides technology, business process and regulatory compliance consulting. --
04/14/14 Orange Health Solutions, Inc. MZI Healthcare, LLC Develops benefit administration and managed care software solutions. --
04/07/14 Premier, Inc. MEMdata, LLC Provides equipment procurement and interior design to medical facilities. --
04/04/14 Varian Medical Systems, Inc. Velocity Medical Solutions, LLC Provides intelligent radiation treatment tools for oncologists. --
04/03/14 edgeMED Healthcare Solutions, Inc. Physician's Billing Alternative, Inc. Provides medical billing and revenue cycle management services. --
04/03/14 ZirMed Inc. TransEngen, Inc. -Payment Processing Provides payment processing, eligibility and patient estimation solutions. --
04/02/14 3D Systems Corp. Medical Modeling Inc. Provides surgical treatments and patient specific medical devices. --
04/01/14 Perficient Inc. BioPharm Systems, Inc. IT consulting company that focuses on the life sciences industry. $17.6
03/18/14 Medytox Information Technology, Inc. ClinLab, Inc. Develops and markets laboratory information management systems. $2.3
03/10/14 Physicians Interactive, Inc. Tomorrow Networks, LLC Mobile application platform that focuses primarily on health care marketing. --
03/05/14 MedStatix, LLC Blue Ocean Solutions & Support, LLC Provides information technology and practice management consulting services. --
03/04/14 Advice Media, LLC E6 Interactive LLC Provides medical website design and development services. --
03/03/14 Healthstream Inc. Health Care Compliance Strategies, Inc. Provides online training courses and learning management systems. $16.0
02/28/14 Norwest Venture Partners iCardiac Technologies, Inc. Develops cardiac safety biomarkers. --
9 HEALTHCARE INFORMATION
TECHNOLOGY
Notable HCIT M&A Transactions
M&A Transactions in the table above include those with EV above $5 million and reported metrics. Sources: S&P Capital IQ. Public companies in bold.
$ in millions
Close Transaction
Date Acquirer/Investor Target Target Description Value Metric
03/18/14 Ashfield Healthcare, LLC KnowledgePoint360 Group LLC Provides healthcare information and communications solutions. $144.0 1.4x Rev; 7.2x EBITDA
03/03/14 Healthstream Inc. Health Care Compliance Strategies, Inc. Provides online training courses to hospitals and healthcare institutions. $16.0 2.4x Rev
11/04/13 Vista Equity Partners Greenway Medical Technologies, Inc. Provides information technology solutions and managed business services. $643.6 4.7x Rev
08/11/13 Medtronic, Inc. Cardiocom, LLC Manufactures telemonitoring products and services. $200.0 4.0x Rev
04/29/13 Qiagen NV Ingenuity Systems Inc. Web-based applications for analyzing and interpreting genomic data. $109.4 5.5x Rev
03/12/13 athenahealth, Inc. Epocrates, Inc. Provides subscriptions for mobile drug reference tools and EHR. $307.2 2.1x Rev; 40.4x EBITDA
02/22/13 McKesson Corporation PSS World Medical Inc. Provides medical products and supplies. $1,941.4 0.8x Rev; 10.1x EBITDA
11/09/12 Thoma Bravo, LLC Mediware Information Systems, Inc. Develops clinical and performance management software systems. $193.4 2.4x Rev; 11.8x EBITDA
10/19/12 Healthstream Inc. Sy.Med Development, Inc. Develops and licenses credentialing related software products. $9.5 2.4x Rev
08/29/12 BioTelemetry, Inc. Cardiocore Lab, Inc. Offers core lab services. $38.8 2.3x Rev; 25.5x EBITDA
08/22/12 Roper Industries Inc. Sunquest Information Systems, Inc. Develops diagnostic information technology. $1,390.0 7.1x Rev; 12.8x EBITDA
08/17/12 One Equity Partners LLC MModal Inc. Provides clinical documentation solutions. $1,083.1 2.3x Rev; 9.6x EBITDA
08/16/12 Streamline Health, Inc. Meta Health Technology, Inc. Provides health information management solutions for healthcare facilities. $16.0 1.2x Rev; 8.2x EBITDA
08/15/12 Lightyear Capital LLC Alegeus Technologies, LLC Offers healthcare and benefit payment solutions. $335.0 2.8x Rev
08/01/12 Hologic Inc. Gen-Probe Incorporated Develops molecular diagnostic products and services. $4,204.1 6.6x Rev; 21.2x EBITDA
05/21/12 Omnicell, Inc. MTS Medication Technologies, Inc. Designs and manufactures automated medication packaging machines. $160.1 2.1x Rev; 12.8x EBITDA
04/25/12 Asahi Kasei Corporation ZOLL Medical Corporation Develops resuscitation devices and data management software solutions. $2,216.2 3.9x Rev; 26.3x EBITDA
04/25/12 Nuance Communications, Inc. Transcend Services, Inc. Provides transcription and clinical documentation services. $331.6 2.5x Rev; 12.2x EBITDA
04/03/12 Varian Medical Systems, Inc. Infimed, Inc. Provides software and hardware for medical imaging. $15.0 1.0x Rev
Deal Revenue EBITDA
Size Multiple Multiple
Transactions Represented 19 19 12
High $3,890.9 7.1x 40.4x
Median $200.0 2.4x 12.5x
Low $9.5 0.8x 7.2x
Mean $662.8 3.0x 16.5x
10 HEALTHCARE INFORMATION
TECHNOLOGY
Top Strategic Acquirers in the HCIT Sector
Source: S&P Capital IQ.
The most acquisitive company in the sector, IMS Health, Inc., has completed or announced six transactions within the sector over the last two years. In
December, IMS Health closed its most recent HCIT acquisition, Pygargus AB, a life sciences advisory and analytics company.
Rank Investor Total Transactions
1 IMS Health Incorporated
Investments: Appature Inc.,DecisionView, Inc.,Incential Software, Inc.,PharmaDeals Ltd.,Semantelli Corporation,TTC LLC
2 McKesson Corporation (NYSE:MCK)
Investments: Emendo Limited,MED3000, Inc.,MedVentive, Inc.,peerVue, Inc.,Proventys, Inc., CDS Oncology Assets
3 Mediware Information Systems, Inc.
Investments: Cobbler ICT Services BV, Cyto Management System,Definitive Homecare Solutions, Ltd.,Fastrack Healthcare Systems, Inc.,MediServe Information
Systems, Inc.,Strategic Healthcare Group LLC
4 Alere Inc. (NYSE:ALR)
Investments: DiagnosisONE, Inc.,eScreen, Inc.,MedApps, Inc.,Method Factory, Inc.
5 Mayo Clinic
Investments: Ambient Clinical Analytics Inc.,Axial Exchange, Inc.,Better,Docphin, Inc.
6 Nuance Communications, Inc. (NasdaqGS:NUAN)
Investments: AccelaRAD, Inc.,J. A. Thomas & Associates Inc.,Quadramed Quantim Corporation,Transcend Services, Inc.
7 Altegra Health, Inc.
Investments: Outcomes Health Information Solutions, LLC,TransUnion Corp., Healthcare Analytics Business,Warm Health, Inc.
8 Biosign Technologies Inc. (OTCPK:BITK.F)
Investments: bioanalytics Inc.,IBL-Internet Business Logic Inc.,QLine Solutions Inc.(pending)
9 Brightree LLC
Investments: CareAnyware, Inc.,MedAct, Inc.,Strategic AR Solutions, LLC
10 Cerner Corporation (NasdaqGS:CERN)
Investments: Anasazi Software, Inc.,LABOTIX Automation, Inc.,PureWellness, Inc.3
3
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Recent & Notable HCIT Public Company Equity Raises
Source: S&P Capital IQ and PitchBook Data Inc.
$ in millions
Transaction
Date Company Funding Type Target Description Value
03/18/14 Veeva Systems Inc. Follow-on Equity Offering Provides cloud-based software solutions for the life sciences industry. $316.2
03/12/14 OptimizeRx Corporation PIPE Provides technology solutions for health care industry. $10.0
03/05/14 iCAD, Inc. Follow-on Equity Offering Provides image analysis, workflow solutions, and radiation therapy. $26.4
02/10/14 Castlight Health, Inc. IPO Provides cloud-based software for enterprises. $177.6
01/02/14 IMS Health Holdings, Inc. IPO Provides information, services, and technology to the healthcare industry. $1,300.0
12/27/13 CareView Communications, Inc. PIPE Develops high speed data network systems deployed in a healthcare facility. $5.0
11/14/13 Streamline Health Solutions, Inc. Follow-on Equity Offering Provides enterprise content management and business analytics solutions. $19.5
09/10/13 Veeva Systems Inc. IPO Provides cloud-based software solutions for the life sciences industry. $260.9
04/25/13 Sebring Software, Inc. PIPE Focuses on the development of software for the dental practice management industry. $11.0
08/24/12 Vocera Communications, Inc. Follow-on Equity Offering Provides mobile communication solutions in healthcare work environments. $138.7
08/16/12 Streamline Health Solutions, Inc. PIPE Provides enterprise content management and business analytics solutions. $13.0
01/09/12 CareView Communications, Inc. PIPE Develops high speed data network systems deployed in a healthcare facility. $5.0
11/14/11 Healthstream Inc. Follow-on Equity Offering Provides a suite of software-as-a-service solutions for the healthcare industry. $52.8
09/16/11 OptimizeRx Corporation PIPE Provides technology solutions for health care industry. $5.0
08/02/11 Patient Access Solutions, Inc. PIPE Provides healthcare and financial processing technology solutions. $5.0
08/01/11 Vocera Communications, Inc. IPO Provides mobile communication solutions in healthcare work environments. $93.6
04/21/11 CareView Communications, Inc. PIPE Develops high speed data network systems deployed in a healthcare facility. $20.0
04/21/11 CareView Communications, Inc. PIPE Develops high speed data network systems deployed in a healthcare facility. $20.0
03/30/11 Quality Systems Inc. PIPE Develops healthcare information systems that automate medical and dental practices. $11.4
11/11/10 Allscripts Healthcare Solutions, Inc. Follow-on Equity Offering Provides clinical, analytics, patient engagement and population health solutions. $224.4
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Recent & Notable HCIT Private Company Equity Raises
Source: S&P Capital IQ and PitchBook Data Inc.
$ in millions
Transaction
Date Company Funding Type Target Description Value
04/29/14 Doximity, Inc. Venture Capital An online professional physician network. $54.0
04/29/14 NantHealth, LLC Growth Capital/Private Equity Provides fiber-optic, cloud-based data infrastructure. $100.0
04/28/14 Alignment Healthcare Growth Capital/Private Equity Provider of clinical care coordination and risk management. $125.0
04/16/14 Better Venture Capital Provides symptom advice and the clinic's health database free of charge. $5.0
04/16/14 Wellcentive, Inc. Growth Capital/Private Equity Offers cloud-based population health management solutions. $12.0
04/10/14 Quantia Venture Capital Provider of a mobile and web-based physician relationship management platform. $10.0
04/09/14 Omada Health Venture Capital Developer of an online diabetes prevention program. $23.0
04/07/14 Orange Health Solutions, Inc. Venture Capital Creates and delivers solutions to healthcare organizations. $22.5
04/03/14 Trinity Pharma Solutions Venture Capital Provider of cloud-based data, analytics services for the global life sciences industry. $19.0
04/02/14 Maestro Healthcare Technology, Inc. Venture Capital An employer benefit solution with private exchange and self-funding capabilities. $17.0
03/28/14 InfoBionic, Inc. Venture Capital Produces a cloud-based SaaS service and wireless remote patient monitoring platform. $17.0
03/27/14 hCentive, Inc. Venture Capital Provides cloud-based healthcare technology solutions for health plans. $35.0
03/26/14 Reflexion Health, Inc. Venture Capital Develops and publishes a prescription software for medical professionals. $7.5
03/24/14 Auris Surgical Robotics, Inc. Growth Capital/Private Equity Engages in the development of robotics technology for medical applications. $34.4
03/21/14 Health Fidelity, Inc. Venture Capital Engaged in the development of a clinical natural language processing platform. $14.1
03/20/14 CitiusTech Growth Capital/Private Equity Provider of technology consulting and services to healthcare providers. $120.0
03/20/14 Reflexion Medical Venture Capital Developer of a radiation therapy system. $6.1
03/04/14 goBalto Venture Capital Provider of cloud software for clinical research. $5.0
03/04/14 Health Outcomes Sciences LLC Growth Capital/Private Equity Provides information technology solutions to the healthcare industry. $12.8
02/21/14 Clinicient, Inc. Growth Capital/Private Equity Provides web-based physical therapy electronic medical records. $15.0
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Source: Company press releases, S&P Capital IQ and PitchBook Data Inc.
Notes: Includes both equity and debt offerings.
IMS Health Holdings, Inc. (Danbury, Connecticut)
April 3, 2014
The company raised $1.3 billion from selling 65 million shares at its initial public offering. The offer price was slightly above the midpoint of its expected price range of $18-$21 per share.
TPG, Canada Pension Plan Investment Board and Leonard Green & Partners took IMS Health private in 2010 for $5.2 billion, including debt.
IMS Health provides prescription data to the pharmaceutical industry, medical device makers, government agencies and other companies in the healthcare sector.
CitiusTech Inc. (Sarasota, Florida)
March 20, 2014
The company entered into definitive agreement on March 20, 2014 to receive $120 million of development capital from General Atlantic, putting the valuation of the company at approximately $460 million.
CitiusTech is a Provider of technology consulting and services to healthcare providers. The company's services include healthcare software development, healthcare interoperability, BI/analytics, care management and consumer health.
Castlight Health, Inc. (San Francisco, California)
March 13, 2014
The company raised $178 million at its initial public offering. The company sold 11.1 million shares which were priced at $16 but soared north of $40 in the first hours of trade.
Castlight Health develops software helps self-insured companies manage health-care costs through tools that let employees shop for the best prices for medical care. Clients include electric car maker Tesla and large Fortune 500 firms like Wal-Mart, Microsoft and Honeywell.
Capital Raises in the Healthcare Technology Sector
Overview of Select Capital Raises
* YTD figures represent total year-to-date capital raises as of
April 30, 2013 & 2014.
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Moss Adams Capital LLC
Full service investment bank and strategic advisor
Dedicated industry specialties
Mergers and acquisitions; sell-side and buy-side
Recapitalizations and institutional capital raises
Key Attributes
Middle market experts: independent, thoughtful client centered advice
Direct and constant senior level attention
Deep and longstanding relationships with debt and equity capital providers and corporate investors/buyers
Industry specific knowledge enhanced by proprietary access and insight from the Moss Adams LLP client base
Moss Adams LLP
Fully integrated accounting, tax and business advisory firm
100 years old
Dominant in Western US
1,800 employees in 22 offices
16,000 nationwide mid market clients
Consulting and Tax Services include financial due diligence, valuation advisory, international tax planning and compliance, transaction structuring and IT consulting and integration
Approximately 2,000 Healthcare Clients
More than 300 clients represented in the Software, Technology, Mobile & Internet sector
U.S. and International Presence
Affiliates in 80+ countries globally
Firm Overview
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TECHNOLOGY
Global Reach Direct international relationships
Moss Adams Capital has a strategic alliance with Mazars Corporate Finance, an international investment bank with 25 offices, to identify cross-border strategic buyers and private equity investors
As a founding member of Praxity, AISBL, a global alliance of independent accounting firms, Moss Adams provides access to trusted expertise in 80+ countries worldwide
Latin America and Caribbean Argentina, Brazil, Cayman islands, Chile, Colombia, Mexico, Puerto Rico, Uruguay, Venezuela
Europe Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Jersey, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom , Ukraine
Asia China, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan, Thailand, Vietnam
Africa Algeria, Angola, Benin, Botswana, Cameroon, Cape Verde, Djibouti, Egypt, Ghana, Ivory Coast, Lesotho, Madagascar, Mauritius, Morocco, Senegal, South Africa, Tunisia, Zambia
Middle East and Indian Subcontinent India, Israel, Lebanon, Pakistan, United Arab Emirates
Australasia Australia, New Zealand
North America United States, Canada
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TECHNOLOGY
Business Services
Financial Services
Clean Technology
Consumer Products
Software & IT Services
Food & Beverage
Healthy Living
Technology Equipment & Communications
Transportation & Logistics
Infrastructure & Construction
Industries Services
Majority and Minority Recapitalizations
Sell-Side and Buy-Side M&A
Management Buy Outs
Corporate Divestures
Fairness Opinions
Institutional Placements – Debt and Equity
Healthcare Services and IT
Industrial Manufacturing
M&A and Capital Formation for Mid-Market Companies
Moss Adams Capital
Expertise... Experience... Superior Results
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Moss Adams Capital LLC Assisting Companies at Each Stage of Growth
Growth Capital
Institutional Private Equity
Venture Capital
Growth Phase
Liquidity / Partnering
Mergers / Partnering for Growth
Sale of Company
Management Buy-Out (MBO), Leveraged Recap / Buy-Out (LBO)
Full or Partial Liquidity
Va
lue
Cre
ati
on
Company Lifecycle
Acquisitions
Acquisitions
Divestitures
Spin-offs
Joint Ventures
Private Equity
Private Debt
PIPEs
Advisory
Expansion Capital
Expansion / Liquidity Phase
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Select Healthcare & Healthcare IT Transactions
Services for the above provided by Moss Adams, and/or its principals.
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Contact Us Moss Adams Capital LLC
2040 Main St
Suite 900
Irvine, California 92614
Richard M. Anderson
Managing Director
Burr J. Dalton
Director
Tyler Dale
Vice President
Geoffrey B. Haydon
Vice President
999 Third Avenue
Suite 2800
Seattle, Washington 98104
Harman K. Wales
Managing Director
Wiley P. Kitchell
Managing Director