US health services deals insights: Q1 2017 update

For the tenth quarter in a row, the US Health Services industry witnessed over 200 deals, but deal volume growth was nearly flat.

Deal volumes remained healthy, with 235 deals announced in Q1 2017, but growth was modest, increasing only 0.9% and 2.6% over prior year and prior quarter, respectively. The most significant trend was a sharp decline in disclosed deal value. Only $7.9 billion worth of deals were disclosed, representing a decline of 49.3% over the prior year and 58.2% over the prior quarter.

Value of megadeals decreased

2017 also started out on a weaker note in terms of megadeals, with only two announced versus Q1 2016’s four. Together, the megadeals represented $5.8 billion, a decline of 43.8% versus prior year. The largest deal – Optum’s announced acquisition of Surgical Care Affiliates Inc – represented 41.4% of total deal value for the quarter.

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Nick Donkar
Partner, PwC’s Deals Practice
Tel: +1 (213) 217 3791

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