New Report on Funding, Mergers and Acquisitions Activity Released

On Monday Mercom Capital Group released their third quarter funding and M&A activity report for the health IT sector. The report shows no let up in a continued trend up with growth reported for five straight quarters.

“Funding and M&A activity continues to be strong in the HIT sector this quarter with a healthy number of early-stage deals. 2012 has the potential to be a billion dollar VC funding year for the sector,” explained Raj Prabhu, Managing Partner of Mercom Capital Group. “Mobile health and social health network companies had a strong showing this quarter.”

No surprise mobile health and social media are on the rise. According to the report the top funding deal for Q3 was the $25.5 million raised by Telcare, a mobile health company that uses cellular machine-to-machine technology for diabetes and other chronic illnesses. The report’s take on mhealth and social networks:

Mobile health continues to gain popularity as an effective means of communication whether it be monitoring, messaging or alerts while healthcare apps continue to grow in niche areas that are empowering consumers with knowledge and connectivity. Social health network companies are enabling patient-to-provider engagement and interactions, provider-to-provider engagement and knowledge sharing while patient-to-patient networks enable consumers to engage, share and support each other.

In VC funding 37 deals totaling $194 million were made. Health Information Management (HIM) companies led the way with $101 million in 20 deals. This was followed by Mobile Health with $39 million in seven deals and Social Health Network companies with $26 million in four deals.

There were 37 Mergers and Acquisition transactions totally $3.2 billion.  The top three M&A transactions:

• Roper Industries acquiring Sunquest Information Systems for $1.4 billion
• One Equity Partners acquiring M*Modal for $1.1 billion,
• Science Applications International Corporation (SAIC) acquirking maxIT Healthcare for $473 million.

You can download the full report here.