Digging For Data: M&A For Pharma IT Rises

The behind-the-scenes world of pharma data and related healthcare info can often appear as inside baseball but, as we know, knowledge is power and metrics is king. So it should not come as a surprise that the value and volume of mergers and acquisitions in the pharma and overall healthcare info tech world is on the rise, at least according to a new report from an investment bank.

To wit, the total deal value rose 81 percent in 2010, was estimated to be $11.6 billion from $6.4 billion the year before. The total number of deals also jumped – by 13 percent to 224 last year from 199 in 2009, according to Berkery Noyes, which noted there were 53 financially sponsored transactions in 2010, with an aggregate value of $2.8 billion. By comparison, there were 171 strategic deals.

The largest transaction in 2010 was the merger of Allscripts-Misys Healthcare Solutions with Eclipsys for $1.27 billion, and the second-largest deal was the $911 purchase of InVentiv Health by Thomas H. Lee Partners. As for pharma-related deals, these accounted for nearly three dozen transactions last year, when including pharma IT, pharma data and pharma business services.

Yet another recent example of this trend is the purchase of SDI Health by IMS Health that was disclosed earlier this month (back story). Not surprisingly, Berkery Noyes expects more deals and, yes, such reports are used to raise visibility and drum up new clients (read the report here).