Emerging Software Solutions Driving Healthcare M&A Activity

Intrepid’s Healthcare and Software teams continue to be active in the market, completing last year’s growth recapitalization of Infor deployment services firm Avaap with New Mainstream Capital, and advising on multiple current services deals, in which proprietary home-grown software is a critical value lever.

Through these transactions and participation in many recent industry events, such as October’s MGMA Conference, January’s JP Morgan Healthcare Conference and February’s HIMSS Exhibition, Intrepid has observed a number of emerging trends that appear to be driving increased investor activity in the healthcare software industry:

  • Care pathway systems now allow clinical providers to seamlessly make informed and medically necessary treatment decisions at the bedside.
  • Patient engagement tools are enabling caregivers to find new and innovative ways to connect with at-risk populations to remotely monitor adherence and motivate patients to modify behavior.
  • Cybersecurity systems can alleviate tremendous anxiety around the risk of data breaches while streamlining interoperability and information flow; privacy and security concerns extend well beyond the health organization into their broad vendor and third-party relationships.
  • Telemedicine technologies are allowing physicians to provide specialized services, where physical distance or staffing shortages used to be a significant hindrance.
  • Analytics and related services to prepare captured information into data-driven decision making continue to be a major priority for healthcare organizations.

We expect to see continued M&A activity across the healthcare software industry as large consolidators and private equity groups escalate their pursuit of acquisitions that provide strategically differentiated capabilities.