AI Magazine Issue 12 2018

Acquisition International - Issue 12 2018 65 Number and Aggregate Value (mil USD) of Healthcare Deals Globally: 2006-2017 YTD (as at 27 November 2017) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) H2 2018 760 20,238 H1 2018 1,046 42,176 H2 2017 1,151 31,107 H1 2017 1,089 24,437 H2 2016 906 17,164 H1 2016 849 17,236 H2 2015 863 37,391 H1 2015 848 27,523 H2 2014 834 24,216 H1 2014 824 22,460 H2 2013 765 27,239 H1 2013 770 16,283 H2 2012 760 16,558 H1 2012 729 13,314 H2 2011 661 10,550 H1 2011 617 23,992 H2 2010 606 19,452 H1 2010 616 13,337 H2 2009 366 7,867 H1 2009 326 4,915 H2 2008 396 7,147 World region (target) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 North America 224 220 255 228 129 Western Europe 132 91 122 114 56 Far East and Central Asia 119 107 89 91 55 Oceania 34 30 30 29 10 South and Central America 12 12 8 11 9 Eastern Europe 35 38 32 20 3 Africa 12 3 2 2 1 Middle East 5 3 1 2 0 Number of Healthcare Deals Globally: 2006-2018 YTD (as at 25 November 2018) Bureau van Dijk There are still five days left until the end of November at the time of writing, but unless a very large deal is announced in this timeframe it looks unlikely that the month will reach the 1,058 deals worth USD 61,166 million recorded in October, or the 1,405 deals worth USD 40,936 million announced in November 2017. That being said, on a quarterly-basis, with still the entirety of December to go, there have already been 1,660 deals worth USD 89,948 million notched up in Q4 2018, which, by value, is on track to exceed the 4,071 deals worth USD 117,013 million announced in Q4 2017. 2018 is set to become one of the largest years for dealmaking in the technology sector, as each quarter has exceeded USD 100,000 million, with Q2 and Q3 notching up more than USD 150,000 million in value. The promising result in the year-to-date is due to six deals that were each valued at more than USD 10,000 million so far in 2018, the largest of which was worth USD 34,000 million and involved IBM buying US-based cloud, storage and systems management group Red Hat. Dell Technologies agreed to acquire cloud infrastructure, business mobility and virtualisation software developer VMware for USD 21,700 million in the second-largest deal, while Broadcom bought information technology and infrastructure management software group CA for USD 18,400 million. Interestingly, each of these deals involved a target based in the US, which has been the dominant target country in 2018, having featured in 13 of the top 20 deals by value. The largest deal announced in November so far was worth USD 8,000 million and involved SAP agreeing to buy US-based online customer insights and research software business Qualtrics. May Holding paid USD 5,700 million for athenahealth, a medical and health system provider, while Vista Equity Partners is acquiring online technology business management group Apptio for USD 1,940 million. In conclusion, while November looks somewhat disappointing in terms of M&A volume and value, just a small number of sizeable deals need to be announced in the coming five weeks, until the year-end, to help improve monthly and quarterly results. However, due to the success of Q1, Q2 and Q3, 2018 has already broken the annual record for value in the industry. Technology Number and Aggregate Value (mil USD) of Healthcare Deals Globally: 2006-2018 YTD (as at 25 November 2018) Number and Aggregate Value (mil USD) of Healthcare Deals Globally: 2006-2018 YTD (as at 25 November 2018) Deal yearly value (Announced date) Number of deals Aggregate deal value (mil $) 2018 1,806 62,414 2017 2,240 55,544 2016 1,755 34,401 2015 1,711 64,914 2014 1,658 46,677 2013 1,535 43,522 2012 1,489 29,872 Deal monthly value (Announced date) Number of deals Aggregate deal value (mil $) November 2018 88 1,466 October 2018 176 4,101 September 2018 157 2,563 August 2018 170 4,614 July 2018 169 7,494 June 2018 173 13,096 May 2018 174 12,252 April 2018 194 5,451 March 2018 174 4,392 February 2018 165 1,893 January 2018 166 5,093 December 2017 178 13,736 November 2017 211 3,838 October 2017 184 1,275 September 2017 187 2,605 August 2017 197 5,502 July 2017 194 4,150 June 2017 163 3,611 May 2017 204 5,511 April 2017 171 2,623 March 2017 215 4,446 February 2017 157 1,477 January 2017 179 6,769 December 2016 190 4,901 November 2016 138 3,735