September 8, 2021, Ben Swett, The SeniorCare Investor - The summer surge in deal-making continued into August, and across most of the healthcare industry, with a total of 150 deals announced across all 13 healthcare sectors, a 30% increase from August of 2020. However, this was a small dip from last month when there were 155 deals made, but we imagine a few more deals may rise to the surface. This is according to statistics from our new platform LevinPro HC, which features the latest healthcare news, deals, insights and analysis.
Last month was an especially busy time for the Physician Medical Groups (PMG) sector, which accounted for nearly 25% of all deals announced in August 2021, with dental and ophthalmology practices making up nearly half of all PMG deals. This is nearly double the amount of PMG deals made in August of 2020, and a 46% rise from July 2021.
The second busiest sector was eHealth, which comprised 20% of the total deals in August, a 25% increase from the previous month and a 20% increase from August of 2020. Healthcare analytics firms were the most popular target within the eHealth space, accounting for over 23% of all deals in that sector. Furthermore, the largest acquisition during the month of August was of Inovalon, an analytics company that provides cloud-based platforms to empower data-driven healthcare, which sold for nearly $7.3 billion to an equity consortium.
So far there have been 305 deals disclosed during July and August of 2021, meaning only 160 more deals are needed during the month of September to surpass the number of deals made during the second quarter of 2021. Could be a tall order, but it is already looking like another packed month for M&A in the healthcare sector.