NEW CANAAN, CONN. (PRWEB) OCTOBER 14, 2022 – Healthcare merger and acquisition activity remained extremely active during the third quarter of 2022, with 734 publicly announced deals, according to new data captured by Irving Levin Associates on its LevinPro HC platform. While some sectors, like Hospitals and Managed Care, had a significant increase in activity, others like Medical Devices experienced a slowdown. Transaction volume in Q3:22 remained virtually the same with deal totals in Q2:22, but increased by nearly 20% compared with the third quarter in 2021.
Healthcare M&A deal value totals revealed a slight increase from $57.74 billion in Q2:22 to $58.2 billion during Q3:22. The total disclosed dollars spent fell dramatically from the $145 billion reported in Q3:21.
“Healthcare M&A activity is showing no signs of slowing,” said Glenn Kalinoski, Editor of Healthcare at Irving Levin Associates. “The two consecutive quarters of shrinking GDP and rising interest rates have not produced any slowdown in deal volumes.”
The Managed Care sector experienced a 78% increase, with 9 deals in Q2:22 and 16 transactions in Q3:22. The Hospitals sector had 12 deals in Q2:22 and 20 in Q3:22, resulting in a 67% increase in activity. Medical Devices reported a 44% decrease in deal totals, dipping from 45 deals in Q2:22 to 25 deals in Q3:22.
The sector with the highest announced deal activity in Q3:22 was Physician Medical Groups with 170 deals followed by 140 for Other Services, which include staffing companies, ambulatory surgical centers, urgent care centers and other ancillary healthcare services.
Private equity activity has been strong and consistent all year, pushing ahead of investment totals in 2021. During Q3:22, there were 245 transactions made by private equity firms or their portfolio companies, representing a 12% increase over Q3:21 when 217 transactions involved private equity.
“Private equity continues to see value in the healthcare sector,” Kalinoski said. “Opportunities to maximize return on invested capital can be found in numerous healthcare subsectors.”
Notable deals that were reported during the third quarter included CVS Health’s acquisition of Signify Health for $8 billion and Remgro Limited’s purchase of Mediclinic International Ltd. for $7.4 billion. Also, Chubb acquired Cigna Corporation’s life, accident and supplemental benefits businesses for $5.4 billion.
All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.
