2017 KEY HIGHLIGHTS• Two of the industry’s top three largest transactions in 2017

occurred in the Pharma Business Services segment: Pamplona

Capital Management’s announced acquisition of PAREXEL

International Corporation, a global biopharmaceutical services

provider, for $4.92 billion; and INC Research’s announced

merger with inVentiv Health for $4.55 billion, which will lead

to the creation of the world’s second largest biopharmaceutical

outsourcing provider.

• Financial sponsors represented 26 percent of total industry

volume and 50 percent of value during the year.

2017 KEY TRENDS• Total transaction volume in 2017 remained almost constant

over 2016, at 460.

• Private equity backed volume increased 24 percent during this

timeframe, from 96 to 119. Strategic volume in 2017 declined

six percent over 2016, from 362 to 341.

• Total transaction value in 2017 stayed nearly the same over

2016, at $30.72 billion.

• The median revenue multiple improved from 1.9x in 2016 to

2.2x in 2017. The median EBITDA multiple rose from 9.5x

to 12.5x, which was close to its 2015 level.

• The combined Pharma IT, Pharma Business Services, and

Pharma Information segments experienced a 16 percent

increase in volume, from 80 to 93 transactions.

M&A MARKET OVERVIEWBerkery Noyes tracked 1,370 Healthcare/Pharma Information and

Technology transactions between 2015 and 2017, of which 287

disclosed fi nancial terms, and calculated the aggregate value to be

$65.55 billion. Based on known transaction values, we project

values of 1,083 undisclosed transactions to be $13.09 billion,

totaling $78.64 billion worth of transactions tracked over the past

three years.

Disclosed median enterprise value multiples for all segments combined

in this report during the last 36 months were 2.2x revenue and 13.0x

EBITDA.

HEALTHCARE/PHARMA INFORMATION AND TECHNOLOGY INDUSTRYFULL YEAR 2017 :: Mergers and Acquisitions Trend Report

Presented by Berkery Noyes 1

Figure 1. 2015-2017 value and volume comparison.

Figure 2. 2015-2017 median revenue and EBITDA comparison.

2

Transaction Analysis :: January 1, 2017 – December 31, 2017

Strategic vs. Financial Comparison

Figure 5. 2017 value and volume comparison by acquirer type.

Note: Financial transactions are those financed by private equity, venture capital, and other investment firms. This includes acquisitions by portfolio companies of the investment firms.

Figure 6. 2015-2017 acquirer type comparison by year.

Figure 3. Shows distribution of Healthcare/Pharma Information and Technology Industry transactions based on publicly available information and Berkery Noyes estimates. Using a logarithmic scale, we determined that nearly one-third of companies purchased had transaction values of $7.4 million to $54.6 million. Based on this data, we estimate the total transaction value of deals done in 2017 at $30.7 billion.

* Indicates largest transaction in the industry from Jan. 1, 2017 to Dec. 31, 2017.

Distribution Table

Figure 4. Presents the data depicted in the bell curve histogram.

Purchaser Analysis

Transaction Volume by Segment :: January 1, 2015 – December 31, 2017

©2018 Berkery Noyes 3

Top Ten Notable Transactions 2017 Median EV/Revenue Multiples by Size

Figure 7. Lists the top ten transactions for 2017 and calculates their aggregate transaction value as a percentage of the total aggregate transaction value as shown in Figures 1 & 4. Transaction data based on announced date.

Figure 8. Presents the median enterprise value/revenue multiples paid for companies in the Healthcare/Pharma Information and Technology Industry from Jan. 1, 2015 to Dec. 31, 2017 based on publicly available sales price and revenue data.

Figure 9. Presents the transaction volume by market segment within the Healthcare/Pharma Information and Technology Industry from Jan. 1, 2015 through Dec. 31, 2017.

2 First Quarter 20112 First Q2 st Quarter 2011rst Qu ereree

245 Park Avenue | New York, New York 10167

berkerynoyes.com | 212.668.3022

RECENT HEALTHCARE TRANSACTIONS

4 ©2018 Berkery Noyes

Founded in 1980, Berkery Noyes is a leading independent investment bank serving the information, software, marketing, and technology industries. Th e fi rm has initiated, managed, and

closed more than 500 merger and acquisition transactions for privately held and publicly traded companies in the healthcare,

fi nancial services, education, and entertainment markets.

Berkery Noyes Securities LLC assists middle market companies with raising growth capital in the debt and equity markets.

CONTACT US TODAY FOR A CONFIDENTIAL DISCUSSION OF YOUR STRATEGIC OPTIONS

212-668-3022

MANAGING DIRECTORS

JONATHAN KRIEGERHealthcare Group

THOMAS O’CONNORHealthcare Group

JEFFREY SMITHHealthcare Group

VINEET ASTHANAMedia and Technology Group

JOHN GUZZO Financial Technology Group

MARTIN MAGIDACorporate Finance Group

DICK O’DONNELLFinance Group

PETER OGNIBENEFinancial Technology Group

SAMEER PALBusiness Software and Services Group

PETER YOONEducation Group

MARY JO ZANDYEducation, Media, and Generalist Groups

PARTNERS

JOSEPH BERKERYChief Executive Offi cer

JAMES BERKERYManaging Partner

All charts in this report are based on data gathered by Berkery Noyes’ research department. All time period statistics are based

on the transaction announcement date. Th e information contained herein is of a general nature and is not intended to address the circumstances of any particular company, individual, or entity. Th ere can be no guarantee that such information is accurate.

For current intelligence on Mergers and Acquisitions activity in the Information Industry please visit our online service at

www.mandasoft.com

The DNA of M&A

HAS BEEN ACQUIRED BY

HAS BEEN ACQUIRED BY

AND

HAVE ACQUIRED

HAS ACQUIREDHAS BEEN ACQUIRED BY

HAS BEEN RECAPITALIZED BY

HAS RECEIVED A GROWTHEQUITY INVESTMENT FROM

HAS ACQUIRED

THE REVENUE CAPTURE AND CODING AND DOCUMENTATION

DIVISIONS OF

HAS INVESTED IN

HAS ACQUIRED