Mergers and acquisitions in the health IT industry increased by 28% during the first half of this year, compared with the second half of 2011, according to a Berkery Noyes report, the Wall Street Journal's "Private Equity Beat" reports.
According to "Private Equity Beat", investors are interested in health IT because it can help reduce costs and improve outcomes.
According to the report, private equity and venture capital deals accounted for 27% of the 196 health IT deals during the first half of 2012, up seven percentage points from the same period last year.
Health IT deals were valued at $5.07 billion during the first half of 2012, down from $5.92 billion in the second half of 2011.
Notable health IT deals during the first half of this year include:
- Veritas Capital in April acquiring Thomson Reuters' health care business for $1.25 billion; and
- Lightyear Capital's June purchase of Fidelity National Information Services' health care benefit business for $335 million (Sergie, "Private Equity Beat," Wall Street Journal, 7/18).