Berkery Noyes: Health Care Industry - 3rd Qtr Trends Report

Complete report

Q3 2012 KEY HIGHLIGHTS

• The largest transaction through Q3 2012 was Roper Industries, Inc.'s acquisition of Sunquest Information Systems, Inc., a portfolio of Vista Equity Partners, for $1.4 billion.
• The most active acquirer year-to-date was IMS Health Incorporated with five transactions, two of which occurred during Q3 2012: TTC LLC and PharmaDeals Ltd.

Q3 2012 KEY TRENDS

• Total transaction volume in Q3 2012 decreased by seven percent over Q2 2012, from 96 to 89.
• Total transaction value in Q3 2012 fell by seven percent over Q2 2012, from $4.2 billion to $3.9 billion.

MULTIPLES & VALUE TRENDS

• The median revenue multiple from 2011 through the 1st 3 Quarters of 2012 increased by 17 percent, from 1.8x to 2.1x.
• The median EBITDA multiple from 2011 through the 1st 3 Quarters of 2012 increased by six percent, from 9.9x to 10.5x.
• One Equity Partners' acquisition of M*Modal represented a 2.3x revenue multiple and 9.6x EBITDA multiple.

TOP TEN DEALS THROUGH Q3 2012

The top ten deals by value have seen three new additions since our half year report: Roper Industries, Inc.'s acquisition of Sunquest Information Systems, Inc., One Equity Partners' acquisition of M*Modal, and SAIC's acquisition of maxIT Healthcare, LLC.

These three transactions, with an aggregate value of $2.9 billion, represented 26 percent of transaction value in the 1st 3 Quarters of 2012 and 74 percent of Q3 2012 transaction value.