The HCIT Deal Landscape: An Analysis of M&A Activity (L.E.K. Consulting)
Largest segment
EHR, practice management and data warehousing 28 deals
Most active solution category in 2022 p.3
Summary
- Over 700 M&A transactions have been consummated in U.S. HCIT since the onset of the pandemic in March 2020.p.1
- From 2018 to 2021, total transactions grew ~18.% p.a., rising from 208 deals to 339.p.1
- M&A volume slowed down significantly in 2022 to 203 total deals as recession concerns accelerated relative declines starting in May.p.2
- Private equity firms completed 16 transactions in 2022, accounting for 8.1% of overall deal activity.p.5
Key insights
- Deal activity in 2022 was heavily provider-focused, prioritizing tools that automate patient engagement, clinical operations, and administrative functions.p.3
- EHR, practice management and data warehousing led all HCIT solution subsegments in deal volume across both 2021 and 2022.p.3
- Virtual care maintained strong acquirer interest post-pandemic, holding the second rank in deal count despite generally smaller deal sizes.p.4
- Strategic corporate acquirers frequently outbid private equity firms due to their focus on post-acquisition synergies.p.5
Topics and entities
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