Healthcare M&A Deals in 2020

Ante Kristo

The health care industry is on an edge and caught up in the middle of a hurricane. With the hospitalizations for COVID-19, revenue that is crucial to the economic growth and stabilization for most hospitals has declined. In addition to directly or indirectly supporting COVID-19 care, health services companies face economic disruptions of uncertain location, timing, and scale.

Reports by Pricewaterhouse Coopers and Kaufman Hall showed a decline in mergers and acquisitions, but still reported sustained interest from buyers. Although there was a minor decrease in mergers and acquisitions in the first half of 2020, some major deals and acquisitions were closed.

Laborie Medical Technologies’ $525 Million Acquisition of Clinical Innovations

LABORIE Medical Technologies executed the definitive agreement to acquire Clinical Innovations for an enterprise value of $525 million. The transaction is subject to customary approvals and is expected to close in early 2020. Clinical Innovations is expanding its global presence while directly researching and developing state-of-the-art technologies and innovative medical devices that fulfill its mission of improving the lives of mothers and their babies throughout the world.

Align Technology’s acquisition of Exocad — $420 million

Align Technology announced it has agreed to acquire dental software company Exocad for approximately $420 million in cash. The move will add Exocad’s experience in restorative dentistry, implantology, guided surgery, and design to Align’s technology portfolio, which includes Invisalign clear-aligner orthodontic and iTero digital solutions. Exocad will also bring nearly 200 digital dentistry partners and more than 35,000 licenses installed worldwide to the deal, according to San Jose, Calif.-based Align.

Baxter International’s acquisition of Sepra Products business of Sanofi — $350 million

According to Reuters, Medical supply company Baxter International Inc, said to buy Safoni’s Seprafilm unit, which makes specialist surgical products, for $350 million in cash.

According to PWC’s research, in Q2 2020 deal values versus Q1 2020, three sub-sectors saw increases: Behavioral Care (900%), Hospitals (11%), and Physician Medical Groups (6%).

Moreover, due to the pandemic, there are a few interesting healthcare asset types that seem more attractive. That is; accelerated growth of remote work, virtual healthcare, home health, and behavioral health. In terms of consumer needs, health services companies must deploy technology that enhances experiences while improving efficiency.

Moreover, there are yet more opportunities for healthcare environment deals to shine.