The healthcare services sector produced 136 transactions, or 55 percent, of the quarter’s total deal volume. The technology sector accounted for the remaining 113 transactions, or 45 percent, of the total deal volume.
The first quarter’s deal volume fell four percent from the previous quarter but was equal with the deal volume in the first quarter of 2011. Of the $34 billion total, $25.6 billion came from the technology sector and $8.4 billion came from the healthcare services sector.
The three most active sectors represented 103 deals, or 41 percent, of the total and included:
• Medical devices with 43 deals worth $8.8 billion;
• Long-term care with 39 deals worth $1.6 billion;
• Biotechnology with 25 deals worth 10.2 billion.
The following sectors were the least active:
• Rehabilitation with five deals;
• Behavioral healthcare with six deals;
• Managed care with six deals.
Hospitals had 23 deals worth $129 million and physician groups had 20 deals in the first quarter. The dollar amount for the physician group deals was not released. According to the report, the absence of large increases in deal volume from fourth quarter 2011 for hospitals and physician groups may be a sign that acute care and physician groups are holding back on deals and reassessing whether they should develop accountable care organizations through mergers and acquisitions.
According to the report, the first quarter’s results may set the trend for the remainder of 2012, and deal volume is on track to rival last year’s figure of approximately 1,000 deals.
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