The M&A growth includes activity in three OBS sub-sectors: accounts receivables management, healthcare revenue cycle management and customer relationship management.
Here are six key points from the newsletter.
1. For the first six months of 2016, deal value in the OBS sector totaled $7.69 billion and comprised 46 announced deals, CAS reports.
2. Deal value in the OBS sector in the second quarter of 2016 totaled $2.65 billion and consisted of 21 announced deals.
3. Deal value in the OBS sector in the second quarter of 2016 increased roughly 104 percent year-over-year, and the number of deals rose 75 percent.
4. Total deal value in the OBS sector through the first half of 2016 exceeded the aggregate deal value for 2015 by roughly 10 percent.
5. Within the OBS sector, healthcare RCM experienced an impressive second quarter this year, with five deals comprising roughly $1.1 billion in enterprise value, CAS reports. Transactions that closed in the second quarter of 2016 include Huron Consulting Group’s acquisition of ADI Strategies, and Allscripts Healthcare Solutions’ previously announced merger with Netsmart Technologies.
6. CAS said it continues to see an active market for RCM companies from both strategic and financial buyers. “Strategic buyers are seeking healthcare RCM add-ons as an attractive vertical to diversify their business stream, especially since the ARM sector continues to face increasing compliance and regulatory uncertainty,” CAS wrote. “Financial buyers are seeking to expand their platform investments through add-on acquisitions of smaller RCM companies in order to recognize significant synergies.”
More articles on transactions and valuations:
4 recent hospital transactions and partnerships
Trinity Health-New England affiliates with 5th hospital
Columbus Radiology to join Radiology Partners
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