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.
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.