Health IT investments are generally living up to expectations, and, if anything, there is increasing investment interest rather than increasing fear of a bubble
Health IT & Health
Information Services
Semi-Annual Market Review
January 2019
www.hgp.com
Copyright 2019 Healthcare Growth Partners
Health IT & Health Information Services:
Market Review January 2019
Table of Contents
Health IT Executive Summary
3
Private Equity Survey
Health IT Market Trends
6
20
HIT M&A (Including Buyout)
23
Health IT Capital Raises (Non-Buyout)
28
Healthcare Capital Markets
29
Macroeconomics
33
Health IT Headlines
34
About Healthcare Growth Partners
40
HGP Transaction Experience
41
Appendix
44
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Health IT Executive Summary
It's Getting Louder in Here!
If there is any change that we have noticed in the Health IT M&A and private equity world since
HGP's founding in 2006, we would boil it down to one word: Noise. Talk to any corporate CEO, and
they will tell you that they receive multiple calls or emails in a given day or hundreds of calls in a
given year, mostly from private equity (and, admittedly, from our peers in investment banking). The
level of noise did not increase overnight, but in the last few years it appears that the competitive
dynamics within Health IT private equity have reached a new level of ferocity due to the following:
Collectively, the number of funds pursuing Health IT, the overall capital base, and number of
outbound calls per fund has compounded to a level that is empowering executives and leaving
many investors feeling exasperated and sometimes wondering whether winning a deal in this
hyper-competitive environment ultimately means they were the ones crazy enough to pay the
highest price.
Investors will be happy to know that based on our latest Health IT Private Equity
Survey, they are not crazy (at least the majority that responded to our survey).
Copyright 2019 Healthcare Growth Partners
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Health IT is a Maturing
Sector with a Strong Thesis
and Proven Returns
More Capital Competing for
Deals
Increasingly Automated
Digital Marketing and
Communications
NOISE!
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As a sector, Health IT has reached a level of maturity that makes it