Merger and acquisition activity in the health care industry soared during the second quarter of 2011, with the medical device sector leading the deal flow.
About 233 deals worth $73.5 billion were announced during the second quarter, compared the $45.7 billion in deals during the year-ago period, an increase of 61 percent, according to data compiled by Norwalk-based Irving Levin Associates.
And the technology sectors, particularly medical devices, continue to attract the lion’s share of investor interest and dollars, with $33 billion in deals being completed during the quarter.
Among the services sectors, M&A activity remains robust in facility-based institutions, such as hospitals and long-term care, which saw $3.6 billion and $1 billion in deals respectively.
“For two quarters running, the medical device industry has been the single most active sector in the health care M&A market,” Sanford Steever, editor of The Health Care M&A Report. “Investors believe that technological innovation in this sector is positioning it for growth. They also believe this growth can be accessed through the acquisition of the innovating companies by larger companies better able to bring new technologies and products to market.”
For the first half of 2011, the health care M&A market has posted 472 deals worth a combined total of nearly $125 billion. Annualizing these figures supports the prediction that 2011 will end with approximately 950 deals worth $250.0 billion, which would set a new record in dollars spent on M&A in the health care industry.
