Issue 8 2020

46 Acquisition International - Issue 8 2020 The value of mergers and acquisitions (M&A) targeting global healthcare companies in July 2020 reached the largest-recorded monthly value since March 2019. In all, there were 115 deals worth an aggregate USD 7,298 million announced in the month under review, according to Zephyr, the M&A database published by Bureau van Dijk. olume improved 6 per cent from 109 deals in June, while value more than doubled from USD 3,176 million over the same timeframe. On a 12-month comparison, volume declined 27 per cent from 157 deals, against a 15 per cent improvement by value from USD 6,322 million in July 2019. Value represented the highest- recorded result since USD 30,232 million was invested across 230 deals in March 2019. The increase comes as coronavirus lockdown measures around the world begin to ease and everyone is starting to get back to the “new normal”. The improvement over the four-week period can be attributed to four deals each worth more than USD 1,000 million, one of which topped the USD 4,000 million barrier. The largest healthcare deal announced in July 2020 involves Ardian France and KKR & Co agreeing to acquire French private hospitals operator Elsan Groupe for USD 4,102 million. This was followed by a USD 1,391 million-acquisition of US-based disease risk testing services provider ArcherDX by InVitae. The third- and fourth-largest deals saw South Shore Hospital, Mercy Hospital & Medical Center and Advocate Trinity Hospital agreeing to merge into a single health system, in a deal worth USD 1,100 million, while Village Practice Management Company has raised USD 1,025 million in a round of funding from undisclosed investors. In all, 11 of the top 20 deals by value featured companies based in the US, three deals targeted a business in Australia, while Russia, China, Thailand, Germany, France and New Zealand featured in one deal apiece. Western Europe was the most prolific target in July 2020, having featured in 15 deals worth an aggregate USD 4,120 million, most of which can be attributed to the month’s largest target, Elsan Groupe. North America featured in 60 deals, making it the largest target region by volume, and placing it second by value with USD 1,756 million. Oceania was third in terms of value in July with USD 1,118 million invested across eight deals. By comparison, North American healthcare companies are leading the way in the year so far, with 471 deals worth an aggregate USD 8,292 million announced in 2020 to date. Western Europe was second by value with USD 5,547 million, while the Far East and Central Asia has featured in 188 deals, making it the second most frequently targeted in the first seven months of 2020. Healthcare M&A has been a shining light for dealmaking in 2020 as many other industries have seen declines in activity and have been seriously affected by the coronavirus pandemic. However, demand for healthcare remains high and businesses in the industry have been searching and trying to develop a vaccine to help combat Covid-19. The improvement so far is a positive indication for the months to come as the world evolves into a new way of living and people remain cautious. Company: Bureau van Dijk E-Mail: [email protected] Web: www.bvdinfo.com Healthcare V