Semi-Annual
Market Review
HEALTH IT & HEALTH INFORMATION SERVICES
JULY 2020
www.hgp.com
Copyright© 2020 Healthcare Growth Partners
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TABLE OF CONTENTS
Health IT Executive Summary
3
Private Equity Survey
5
Health IT Market Trends
10
Health IT M&A (Including Buyout)
13
Health IT Capital Raises (Non-Buyout)
18
Healthcare Capital Markets
19
Macroeconomics
23
Health IT Headlines
25
About Healthcare Growth Partners
28
HGP Transaction Experience
29
Appendix A – M&A Highlights
32
Appendix B – Buyout Highlights
35
Appendix C – Investment Highlights
37
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Copyright© 2020 Healthcare Growth Partners
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EXECUTIVE SUMMARY
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COVID-19 has quickly and permanently changed the way business is conducted around the world.
Health IT was no exception, as providers rapidly shifted to virtual care delivery models enabled by
new CMS rules and technology that equips the American healthcare system with maximum flexibility
to respond to the COVID-19 pandemic. Together, these innovations accelerated the transformational
shift to “hospitals without walls”. While the Health IT and broader Healthcare industry have
undoubtedly received renewed attention during this public health crisis and will experience a long-
term lift, we have also observed a slowdown in the pace of transaction activity, albeit a more
measured slowdown when compared to that of other industries. The underlying sentiment for
Health IT is as strong as ever, as evident in our Private Equity Survey (beginning page 5). The
following six measures of Health IT activity during the first half of 2020 reflect the challenges of the
lockdown but overall reflect how Health IT continues to receive high investor interest due to
overwhelmingly strong fundamentals during this tough economic environment.
KEY MEASURES: COVID-19 IMPACT ON HEALTH IT
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22
32
10
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0
5
10
15
20
25
30
35
Jan
Feb
Mar
Apr
May
Jun
# of AcquisitionsMeasure #1: 1H 2020 US M&A Activity
2019 Avg., 27 deals
M&A SAW A SHARP DECLINE IN APRIL,
FOLLOWED BY A TENTATIVE RECOVERY IN
MAY AND JUNE.