Global and U.S. Health IT investment are up 849% and 583% since 2011,respectively. The S&P 500 gained nearly 20%, marking the 9th year of a bull market.
<p>Health IT & Health
Information Services
Semi-Annual Market Review
January 2018
www.hgp.com
Copyright 2018 Healthcare Growth Partners
Health IT & Health Information Services:
Market Review January 2018
Table of Contents
Health IT Executive Summary
3
Health IT Market Trends
6
HGP 2017 Corporate M&A Survey
9
HIT M&A (Including Buyout)
16
Health IT Capital Raises (Non-Buyout)
21
Healthcare Capital Markets
22
Macroeconomics
26
Health IT Headlines
28
About Healthcare Growth Partners
35
HGP Transaction Experience
36
Appendix
39
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Health IT Executive Summary
Market Disorientation
2017 was a blockbuster year for Health IT. Despite uncertainty surrounding a failed effort to repeal
the ACA and the resignation of HHS Secretary Tom Price, the HGP Health IT index gained 25%,
Health IT Investment activity shattered prior records, and Health IT M&A activity and valuations
hover at all-time highs. Global and U.S. Health IT investment are up 849% and 583% since 2011,
respectively. The S&P 500 gained nearly 20%, marking the 9th year of a bull market.
The U.S.
unemployment rate is at a 17 year low at 4.1%, and interest rates, while trending up, remain near all-
time lows, providing easy access to capital. All of this occurred even before lower corporate and
individual tax rates kicked in on January 1. The Health IT stats are staggeringly good. But are they
scary good? In this HGP HIT Market Review, we uncover the findings from our bi-annual Health IT
M&A Survey. Our 13 question survey covers a range of topics, including whether the Health IT
market is in a bubble, to which survey respondents reported the following in comparison to the
same question in 2015:
There is certainly an abundance of growth capital flooding into the Health IT Market we've seen
nearly $34 billion globally and $26.2 billion in the U.S. since 2013. Compared to the prior 5-years,
this represents a 608% and 387% increase in capital. With such a swing, one can speculate that the
market is either correcting for historical underfunding