By Madeline Armstrong
Since the pandemic, merger and acquisition deals have remained comparatively low. However, according to Kaufman Hall’s midyear industry report, the total revenue during the second quarter of 2022 rates above previous years’ second quarters. Here are the top merger and acquisition deals that were made thus far in 2022:
1. Oracle buys Cerner, a health IT company
The all-cash $28 billion deal came shortly after Cerner passed its final regulatory hurdles. This purchase put Cerner at $95 a share and will be accretive on Oracle’s earnings in 2023, the parties said at deal announcement. 69.2 percent of all Cerner shares will be tendered to Oracle. The database giant will be able to expand into the healthcare industry as a result of the merger.
2. Advocate Aura Health purchases Atrium Health
The $27 billion merger was announced in May. Advocate Aura Health was just under $14.1 billion in total revenue and Atrium Health was at $12.9 billion.
3. Hellman & Friedman and Bain Capital jointly acquire Athenahealth
The two companies paid a total of $17 billion to acquire Athenahealth, a company that provides cloud-based healthcare products and services. Athenahealth’s current management will remain in place.
4. Intermountain Healthcare acquires SCL Health
Based in Utah, Intermountain Healthcare has acquired a number of health systems across the West including HealthCare Partners Nevada, Saltzer Health and Classic Air Medical. Once merged, Intermountain Healthcare and SCL Health will have $16.2 billion in investments and cash, $16.8 billion in assets and $14.2 billion in annual revenue.
5. UnitedHealth Group purchases LHC Group
Healthcare giant UnitedHealth Group is buying the home healthcare company LHC Group at $170 per share. This is about $5.4 billion that will be paid in cash. LHC will be folded into United Health’s Optum subsidiary in the OptumHealth arm – one of the country’s largest employers of physicians.
6. R1 RCM acquires Cloudmed
R1 RCM is a revenue cycle management company and acquired Cloudmed, an AI-based RCM platform for $4.1 billion in stock. According to the deal, current R1 shareholders will own 70% of the company while Cloudmed equity holders will own the remaining 30%.
7. Stone Point Capital acquires Tivity Health
Tivity Health offers virtual and in-person fitness and health programs for seniors. Tivity health paid $2 billion at $32.50 in cash per share. Stone Point Capital was able to maintain its headquarters and executive leadership.
8. UnitedHealth Group purchases EMIS Group
EMIS Group is a health technology company based in the U.K. It was purchased by United Health Group in a $1.5 billion cash deal. Bordeaux UK Holdings II Limited, an affiliate of United Health’s Optum business in the UK, made the offer. According to Optum U.K. leadership, this merger will provide more advanced tech solutions to both general practitioners and the country’s National Health Service.
9. Piedmont Healthcare merges with University Healthcare System
Piedmont Healthcare will invest $1billion into University’s healthcare systems. They have acquired the three associated hospitals in addition to two nursing and rehabilitation centers and a number of physician practices. With this merger, Piedmont Healthcare now operates 19 hospitals, which is more than any other system in Georgia.
10. City of Hope acquires Cancer Treatment Centers of America
City of Hope acquired Cancer Treatment Centers of America for $390 million. City of Hope intends to turn the Cancer Treatment Centers into a nonprofit. This will allow City of Hope to provide cancer treatment to more individuals who cannot afford lifesaving healthcare. The combined organization will serve approximately 115,000 patients each year, with more than 11,000 employees and 575 physicians.
