Healthcare Information Technology€¦ · Share Price 52 Week High - Low Market Cap Enterprise...

1 HEALTHCARE INFORMATION

TECHNOLOGY

M A R K E T M O N I T O R

S P R I N G 2 0 1 4

Healthcare Information Technology


TECHNOLOGY

Contents

MARKET OVERVIEW 3

PUBLIC HCIT VALUATION METRICS 5

HCIT SECTOR TRANSACTION ACTIVITY 7

MOSS ADAMS OVERVIEW 14

SELECT MOSS ADAMS CAPITAL TRANSACTIONS 18


TECHNOLOGY

Despite ICD-10 Delay, Favorable Industry Dynamics Still Driving Growth Delay in ICD-10

At the end of March, the Senate approved a measure to delay ICD-10 implementation as part of the “doc fix” legislation, pushing the

timeframe back by one year. While this additional time will be helpful to those providers that were not yet prepared for the transition, it

may prove costly to those that were.

Population Health

Population Health has emerged as one of the most popular buzzwords around the HCIT industry lately. While some companies have

introduced new products to address the movement towards a value-based care system, others have opted to do it via acquisitions.

Life sciences software and IT services spend

The software and IT services spend in the life science industry is showing continuous growth with the trend expected to continue as most

processes in the industry still need to be upgraded to newer software. Furthermore, despite the accelerated growth in the global life

sciences market, companies are facing margin pressure given the changes in their pricing, reimbursement challenges and rising costs of

compliance.

Global Life Sciences IT Software & Services Spend

Sources: CMS, Gartner, industry articles and Moss Adams Capital analysis.

$4,541 $4,863 $5,182 $5,514 $5,900 $6,305

$7,410 $7,802

$8,216 $8,643

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E

$ in millions

Life Science MDM Spend

Life Science Content Management Spend

Life Science CRM Spend


TECHNOLOGY

U.S. middle market M&A transaction volume in Q1 2014 rose 28% from one year ago but stayed flat compared to the prior quarter.

In deal value terms, U.S. middle market M&A activity in Q1 2014 grew 25% from a year earlier but dropped 22% compared to the prior quarter.

Q1 2014 EBITDA multiples of middle market transactions fell slightly from the prior quarter but increased significantly from year ago levels.

EBITDA valuation levels of middle market deals remain at high levels last seen in Q4’10.

Q1’14 EBITDA margins of reportable transactions showed higher levels vs both last year and quarter.

Middle Market M&A: Continued Flat Volumes, High Deal Valuations

U.S. Middle Market M&A 1 U.S. Middle Market M&A Valuations 2

1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million. 2) Middle market M&A includes transactions with disclosed EBITDA, where EV < $500 million and EV/EBITDA < 10x. Note: transactions with disclosed EBITDA represent <5% of all transactions. Source: S&P Capital IQ.

1,828 1,895

2,011

2,281

2,855 2,953 2,927

3,080 2,984

3,682 3,681

3,852

3,539 3,453

3,622

3,986

3,134

3,319

4,092 4,054 3,997

$21$25

$28

$36$32

$43

$56 $55

$47

$71 $72$70

$52$56

$52

$66

$44

$50

$65

$71

$55

$0

$20

$40

$60

$80

$100

$120

$140

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2009 2010 2011 2012 2013 2014

Tran

saction

Valu

e ($b

n)N

um

ber

of

Tra

nsa

ctio

ns

Number Value

5.7x 5.6x 5.7x

6.4x

4.8x

6.7x

6.4x

7.0x6.7x 6.8x 6.8x 6.9x

5.9x

6.4x6.2x 6.2x 6.4x

6.0x6.2x

7.2x7.0x

18.1%

10.7%11.3%

16.7%

15.0%14.2%

15.3%14.5%

16.7%16.6%16.9%

15.0%

12.4%13.0%

14.6%

16.7%

15.3%14.8%13.7%

10.6%

17.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2009 2010 2011 2012 2013 2014

EB

ITD

A M

argin

EV

/Tra

ilin

g E

BIT

DA

Mu

ltip

le

EV/EBITDA EBITDA Margin


TECHNOLOGY

Healthcare IT stocks took a hit toward the end of the first quarter as several companies announced disappointing numbers and a bill to

delay ICD-10 compliance was passed in the Senate. Despite this pullback, the HCIT index has still outperformed the broader market

over the last three years and all three subcategories within the HCIT sector (Practice Management Software, Data

Analytics/Internet/Niche, and Pharma/Clinical Trials) are still expected to outperform the broader market over the next 12 months.

Note: The Healthcare IT Index is composed of the public companies included on page 5. Source: S&P Capital IQ.

Historical Performance: Healthcare IT vs. S&P Next 12 Months: Estimated Sales & EBITDA Growth

Despite Sell-off, HCIT Still Expected to Outperform the Overall Market

4.5% 5.0%

13.2% 15.3%12.8%

48.8%

109.2%

15.5%

0%

20%

40%

60%

80%

100%

120%

S&P 500 PMS Data Analytics/Internet/ Niche

Pharma/ ClinicalTrials

Est. NTM Sales Growth

Est. NTM EBITDA Growth

HCIT Index

51%

S&P 500

38%

-25%

0%

25%

50%

75%

100%

Ma

rke

t P

erf

orm

an

ce


TECHNOLOGY

Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 50x. NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St. analysts.

Selected HCIT Public Company Valuations

Source: S&P Capital IQ.

($ in millions, except per share amounts)

5/6/14 TTM Data EV Multiple

Company Name

Share

Price

52 Week

High - Low

Market

Cap

Enterprise

Value Sales EBITDA

EBITDA

Margin Sales EBITDA

TTM

Sales

TTM

EBITDA

NTM

Sales

NTM

EBITDA

HCIT - Practice Management Software

Cerner Corporation $50.15 $63.07 - $45.81 $17,220 $16,349 $2,939 $774 26.3% 17.0% 59.8% 5.6x 21.1x 4.8x 13.2x

Allscripts Healthcare Solutions, Inc. 15.06 19.68 - 12.54 2,702 3,201 1,373 10 0.7% 4.3% 2155.3% 2.3x NM 2.2x 14.4x

MedAssets, Inc. 22.02 26.58 - 16.31 1,343 2,119 678 202 29.8% 5.2% 18.4% 3.1x 10.5x 3.0x 8.9x

Omnicell, Inc. 25.52 30.33 - 17.52 933 825 395 58 14.6% 10.1% 48.8% 2.1x 14.3x 1.9x 9.6x

Quality Systems Inc. 14.84 24.15 - 14.10 894 800 441 73 16.5% 5.0% 23.3% 1.8x 11.0x 1.7x 8.9x

Computer Programs & Systems Inc. 61.65 71.89 - 47.23 688 659 203 56 27.3% 4.4% 14.5% 3.2x 11.9x 3.1x 10.4x

Merge Healthcare Incorporated 2.20 4.71 - 1.99 209 418 219 25 11.6% (0.9%) 66.8% 1.9x 16.4x 1.9x 9.8x

Median $825 $441 $58 16.5% 5.0% 48.8% 2.3x 13.1x 2.2x 9.8x

Average $3,482 $893 $171 18.1% 6.4% 341.0% 2.9x 14.2x 2.7x 10.7x

HCIT - Data Analytics/Internet/Niche

athenahealth, Inc. $109.21 $206.70 - $82.01 $4,133 $4,227 $632 $58 9.2% 23.8% 136.0% 6.7x NM 5.4x 30.7x

WebMD Health Corp. 42.42 51.41 - 25.18 1,603 1,777 536 87 16.2% 9.2% 82.3% 3.3x 20.5x 3.0x 11.2x

Healthstream Inc. 23.80 39.77 - 20.76 656 554 141 24 17.0% 24.6% 7.8% 3.9x 23.2x 3.2x 21.5x

Vocera Communications, Inc. 12.29 19.71 - 11.78 309 187 105 (11) NA 7.2% NA 1.8x NA 1.7x NA

Streamline Health Solutions, Inc. 4.95 8.50 - 4.70 86 102 29 1 2.1% 13.2% 860.7% 3.6x NM 3.1x 17.3x

Median $554 $141 $24 12.7% 13.2% 109.2% 3.6x 21.8x 3.1x 19.4x

Average $1,370 $289 $32 11.1% 15.6% 271.7% 3.9x 21.8x 3.3x 20.2x

HCIT - Pharma/Clinical Trials

Catamaran Corporation $41.20 $60.93 - $40.52 $8,523 $10,133 $16,475 $725 4.4% 30.6% 15.5% 0.6x 14.0x 0.5x 12.1x

PAREXEL International Corporation 44.60 57.25 - 37.53 2,537 2,535 1,892 262 13.8% 9.1% 13.5% 1.3x 9.7x 1.2x 8.5x

Charles River Laboratories International, Inc. 50.96 62.50 - 40.55 2,465 2,949 1,174 256 21.9% 12.4% 15.6% 2.5x 11.5x 2.2x 9.9x

Medidata Solutions, Inc. 36.61 68.21 - 32.63 1,980 1,991 290 26 8.9% 23.5% 235.4% 6.9x NM 5.6x 23.1x

Simulations Plus, Inc. 6.07 7.09 - 3.91 98 88 10 4 37.6% 15.3% NA 8.5x 22.6x 7.4x NA

Median $2,535 $1,174 $256 13.8% 15.3% 15.5% 2.5x 12.7x 2.2x 11.0x

Average $3,539 $3,968 $255 17.3% 18.2% 70.0% 4.0x 14.4x 3.4x 13.4x

NTM Est. Growth


TECHNOLOGY

The first quarter of 2014 ended with M&A activity continuing

the upward trend that started in the second quarter of last

year and showed a significant improvement over the same

period one year ago. Signs continue to point toward an

increase in activity within the fragmented landscape.

EV/EBITDA multiples for public HCIT companies dropped

significantly as stocks sold-off in response to the news of

another delay in ICD-10 compliance. However, the index

continues to trade at a significant premium to the S&P 500.

HCIT Sector M&A Transactions & Public Valuations


HCIT M&A Deal Volume HCIT Public Market Valuations

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010 2011 2012 2013 2014

Nu

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HCIT Index

18.8x

S&P 500

10.0x

5.0x

7.0x

9.0x

11.0x

13.0x

15.0x

17.0x

19.0x

21.0x

23.0x

25.0x

EV

/ E

BIT

DA


TECHNOLOGY

Recent HCIT M&A Transactions

Sources: S&P Capital IQ. Public companies in bold.

$ in millions

Close Transaction

Date Acquirer/Investor Target Target Description Value

Pending Joerns Healthcare Inc. RecoverCare, LLC Distributes safe patient handling solutions. --

Pending Connolly, LLC iHealth Technologies, Inc. Provides payment policy management solutions. --

Pending Cytta Corp. Visual Telecommunications Network, Inc. Provides telehealth and telemedicine solutions. --

05/05/14 Huron Consulting Group Inc. Vonlay, LLC Provides healthcare information technology consulting services. --

04/28/14 Truven Health Analytics Inc. Fortel Analytics LLC Deploys predictive analytic and risk management solutions for healthcare payers. --

04/28/14 Press Ganey Associates, Inc. Dynamic Clinical Systems, Inc. Provides patient-reported outcomes platform for clinical information management. --

04/28/14 Accolade, Inc. DocVue, Inc. Develops software that allows consumers to engage with healthcare providers. --

04/24/14 Zynx Health Incorporated CareInSync Corporation Provides software solutions for communication between healthcare providers. --

04/17/14 Nuance Communications, Inc. AccelaRAD, Inc. Designs and delivers medical image cloud computing solutions. --

04/16/14 Symphony Technology Group MD Datacor, Inc. Develops and delivers health care quality management solutions. --

04/14/14 Alpha II Software Solutions Unicor Medical, Inc. Operates as a coding software developer and publisher of ICD coding materials. --

04/14/14 Public Consulting Group, Inc. Hubbert Systems Consulting, Inc Provides technology, business process and regulatory compliance consulting. --

04/14/14 Orange Health Solutions, Inc. MZI Healthcare, LLC Develops benefit administration and managed care software solutions. --

04/07/14 Premier, Inc. MEMdata, LLC Provides equipment procurement and interior design to medical facilities. --

04/04/14 Varian Medical Systems, Inc. Velocity Medical Solutions, LLC Provides intelligent radiation treatment tools for oncologists. --

04/03/14 edgeMED Healthcare Solutions, Inc. Physician's Billing Alternative, Inc. Provides medical billing and revenue cycle management services. --

04/03/14 ZirMed Inc. TransEngen, Inc. -Payment Processing Provides payment processing, eligibility and patient estimation solutions. --

04/02/14 3D Systems Corp. Medical Modeling Inc. Provides surgical treatments and patient specific medical devices. --

04/01/14 Perficient Inc. BioPharm Systems, Inc. IT consulting company that focuses on the life sciences industry. $17.6

03/18/14 Medytox Information Technology, Inc. ClinLab, Inc. Develops and markets laboratory information management systems. $2.3

03/10/14 Physicians Interactive, Inc. Tomorrow Networks, LLC Mobile application platform that focuses primarily on health care marketing. --

03/05/14 MedStatix, LLC Blue Ocean Solutions & Support, LLC Provides information technology and practice management consulting services. --

03/04/14 Advice Media, LLC E6 Interactive LLC Provides medical website design and development services. --

03/03/14 Healthstream Inc. Health Care Compliance Strategies, Inc. Provides online training courses and learning management systems. $16.0

02/28/14 Norwest Venture Partners iCardiac Technologies, Inc. Develops cardiac safety biomarkers. --


TECHNOLOGY

Notable HCIT M&A Transactions

M&A Transactions in the table above include those with EV above $5 million and reported metrics. Sources: S&P Capital IQ. Public companies in bold.

$ in millions

Close Transaction

Date Acquirer/Investor Target Target Description Value Metric

03/18/14 Ashfield Healthcare, LLC KnowledgePoint360 Group LLC Provides healthcare information and communications solutions. $144.0 1.4x Rev; 7.2x EBITDA

03/03/14 Healthstream Inc. Health Care Compliance Strategies, Inc. Provides online training courses to hospitals and healthcare institutions. $16.0 2.4x Rev

11/04/13 Vista Equity Partners Greenway Medical Technologies, Inc. Provides information technology solutions and managed business services. $643.6 4.7x Rev

08/11/13 Medtronic, Inc. Cardiocom, LLC Manufactures telemonitoring products and services. $200.0 4.0x Rev

04/29/13 Qiagen NV Ingenuity Systems Inc. Web-based applications for analyzing and interpreting genomic data. $109.4 5.5x Rev

03/12/13 athenahealth, Inc. Epocrates, Inc. Provides subscriptions for mobile drug reference tools and EHR. $307.2 2.1x Rev; 40.4x EBITDA

02/22/13 McKesson Corporation PSS World Medical Inc. Provides medical products and supplies. $1,941.4 0.8x Rev; 10.1x EBITDA

11/09/12 Thoma Bravo, LLC Mediware Information Systems, Inc. Develops clinical and performance management software systems. $193.4 2.4x Rev; 11.8x EBITDA

10/19/12 Healthstream Inc. Sy.Med Development, Inc. Develops and licenses credentialing related software products. $9.5 2.4x Rev

08/29/12 BioTelemetry, Inc. Cardiocore Lab, Inc. Offers core lab services. $38.8 2.3x Rev; 25.5x EBITDA

08/22/12 Roper Industries Inc. Sunquest Information Systems, Inc. Develops diagnostic information technology. $1,390.0 7.1x Rev; 12.8x EBITDA

08/17/12 One Equity Partners LLC MModal Inc. Provides clinical documentation solutions. $1,083.1 2.3x Rev; 9.6x EBITDA

08/16/12 Streamline Health, Inc. Meta Health Technology, Inc. Provides health information management solutions for healthcare facilities. $16.0 1.2x Rev; 8.2x EBITDA

08/15/12 Lightyear Capital LLC Alegeus Technologies, LLC Offers healthcare and benefit payment solutions. $335.0 2.8x Rev

08/01/12 Hologic Inc. Gen-Probe Incorporated Develops molecular diagnostic products and services. $4,204.1 6.6x Rev; 21.2x EBITDA

05/21/12 Omnicell, Inc. MTS Medication Technologies, Inc. Designs and manufactures automated medication packaging machines. $160.1 2.1x Rev; 12.8x EBITDA

04/25/12 Asahi Kasei Corporation ZOLL Medical Corporation Develops resuscitation devices and data management software solutions. $2,216.2 3.9x Rev; 26.3x EBITDA

04/25/12 Nuance Communications, Inc. Transcend Services, Inc. Provides transcription and clinical documentation services. $331.6 2.5x Rev; 12.2x EBITDA

04/03/12 Varian Medical Systems, Inc. Infimed, Inc. Provides software and hardware for medical imaging. $15.0 1.0x Rev

Deal Revenue EBITDA

Size Multiple Multiple

Transactions Represented 19 19 12

High $3,890.9 7.1x 40.4x

Median $200.0 2.4x 12.5x

Low $9.5 0.8x 7.2x

Mean $662.8 3.0x 16.5x


TECHNOLOGY

Top Strategic Acquirers in the HCIT Sector


The most acquisitive company in the sector, IMS Health, Inc., has completed or announced six transactions within the sector over the last two years. In

December, IMS Health closed its most recent HCIT acquisition, Pygargus AB, a life sciences advisory and analytics company.

Rank Investor Total Transactions

1 IMS Health Incorporated

Investments: Appature Inc.,DecisionView, Inc.,Incential Software, Inc.,PharmaDeals Ltd.,Semantelli Corporation,TTC LLC

2 McKesson Corporation (NYSE:MCK)

Investments: Emendo Limited,MED3000, Inc.,MedVentive, Inc.,peerVue, Inc.,Proventys, Inc., CDS Oncology Assets

3 Mediware Information Systems, Inc.

Investments: Cobbler ICT Services BV, Cyto Management System,Definitive Homecare Solutions, Ltd.,Fastrack Healthcare Systems, Inc.,MediServe Information

Systems, Inc.,Strategic Healthcare Group LLC

4 Alere Inc. (NYSE:ALR)

Investments: DiagnosisONE, Inc.,eScreen, Inc.,MedApps, Inc.,Method Factory, Inc.

5 Mayo Clinic

Investments: Ambient Clinical Analytics Inc.,Axial Exchange, Inc.,Better,Docphin, Inc.

6 Nuance Communications, Inc. (NasdaqGS:NUAN)

Investments: AccelaRAD, Inc.,J. A. Thomas & Associates Inc.,Quadramed Quantim Corporation,Transcend Services, Inc.

7 Altegra Health, Inc.

Investments: Outcomes Health Information Solutions, LLC,TransUnion Corp., Healthcare Analytics Business,Warm Health, Inc.

8 Biosign Technologies Inc. (OTCPK:BITK.F)

Investments: bioanalytics Inc.,IBL-Internet Business Logic Inc.,QLine Solutions Inc.(pending)

9 Brightree LLC

Investments: CareAnyware, Inc.,MedAct, Inc.,Strategic AR Solutions, LLC

10 Cerner Corporation (NasdaqGS:CERN)

Investments: Anasazi Software, Inc.,LABOTIX Automation, Inc.,PureWellness, Inc.3

3

3

6

3

4

4

4

5

5


TECHNOLOGY

Recent & Notable HCIT Public Company Equity Raises

Source: S&P Capital IQ and PitchBook Data Inc.

$ in millions

Transaction

Date Company Funding Type Target Description Value

03/18/14 Veeva Systems Inc. Follow-on Equity Offering Provides cloud-based software solutions for the life sciences industry. $316.2

03/12/14 OptimizeRx Corporation PIPE Provides technology solutions for health care industry. $10.0

03/05/14 iCAD, Inc. Follow-on Equity Offering Provides image analysis, workflow solutions, and radiation therapy. $26.4

02/10/14 Castlight Health, Inc. IPO Provides cloud-based software for enterprises. $177.6

01/02/14 IMS Health Holdings, Inc. IPO Provides information, services, and technology to the healthcare industry. $1,300.0

12/27/13 CareView Communications, Inc. PIPE Develops high speed data network systems deployed in a healthcare facility. $5.0

11/14/13 Streamline Health Solutions, Inc. Follow-on Equity Offering Provides enterprise content management and business analytics solutions. $19.5

09/10/13 Veeva Systems Inc. IPO Provides cloud-based software solutions for the life sciences industry. $260.9

04/25/13 Sebring Software, Inc. PIPE Focuses on the development of software for the dental practice management industry. $11.0

08/24/12 Vocera Communications, Inc. Follow-on Equity Offering Provides mobile communication solutions in healthcare work environments. $138.7

08/16/12 Streamline Health Solutions, Inc. PIPE Provides enterprise content management and business analytics solutions. $13.0


11/14/11 Healthstream Inc. Follow-on Equity Offering Provides a suite of software-as-a-service solutions for the healthcare industry. $52.8

09/16/11 OptimizeRx Corporation PIPE Provides technology solutions for health care industry. $5.0

08/02/11 Patient Access Solutions, Inc. PIPE Provides healthcare and financial processing technology solutions. $5.0

08/01/11 Vocera Communications, Inc. IPO Provides mobile communication solutions in healthcare work environments. $93.6



03/30/11 Quality Systems Inc. PIPE Develops healthcare information systems that automate medical and dental practices. $11.4

11/11/10 Allscripts Healthcare Solutions, Inc. Follow-on Equity Offering Provides clinical, analytics, patient engagement and population health solutions. $224.4


TECHNOLOGY

Recent & Notable HCIT Private Company Equity Raises

Source: S&P Capital IQ and PitchBook Data Inc.

$ in millions

Transaction

Date Company Funding Type Target Description Value

04/29/14 Doximity, Inc. Venture Capital An online professional physician network. $54.0

04/29/14 NantHealth, LLC Growth Capital/Private Equity Provides fiber-optic, cloud-based data infrastructure. $100.0

04/28/14 Alignment Healthcare Growth Capital/Private Equity Provider of clinical care coordination and risk management. $125.0

04/16/14 Better Venture Capital Provides symptom advice and the clinic's health database free of charge. $5.0

04/16/14 Wellcentive, Inc. Growth Capital/Private Equity Offers cloud-based population health management solutions. $12.0

04/10/14 Quantia Venture Capital Provider of a mobile and web-based physician relationship management platform. $10.0

04/09/14 Omada Health Venture Capital Developer of an online diabetes prevention program. $23.0

04/07/14 Orange Health Solutions, Inc. Venture Capital Creates and delivers solutions to healthcare organizations. $22.5

04/03/14 Trinity Pharma Solutions Venture Capital Provider of cloud-based data, analytics services for the global life sciences industry. $19.0

04/02/14 Maestro Healthcare Technology, Inc. Venture Capital An employer benefit solution with private exchange and self-funding capabilities. $17.0

03/28/14 InfoBionic, Inc. Venture Capital Produces a cloud-based SaaS service and wireless remote patient monitoring platform. $17.0

03/27/14 hCentive, Inc. Venture Capital Provides cloud-based healthcare technology solutions for health plans. $35.0

03/26/14 Reflexion Health, Inc. Venture Capital Develops and publishes a prescription software for medical professionals. $7.5

03/24/14 Auris Surgical Robotics, Inc. Growth Capital/Private Equity Engages in the development of robotics technology for medical applications. $34.4

03/21/14 Health Fidelity, Inc. Venture Capital Engaged in the development of a clinical natural language processing platform. $14.1

03/20/14 CitiusTech Growth Capital/Private Equity Provider of technology consulting and services to healthcare providers. $120.0

03/20/14 Reflexion Medical Venture Capital Developer of a radiation therapy system. $6.1

03/04/14 goBalto Venture Capital Provider of cloud software for clinical research. $5.0

03/04/14 Health Outcomes Sciences LLC Growth Capital/Private Equity Provides information technology solutions to the healthcare industry. $12.8

02/21/14 Clinicient, Inc. Growth Capital/Private Equity Provides web-based physical therapy electronic medical records. $15.0


TECHNOLOGY

Source: Company press releases, S&P Capital IQ and PitchBook Data Inc.

Notes: Includes both equity and debt offerings.

IMS Health Holdings, Inc. (Danbury, Connecticut)

April 3, 2014

The company raised $1.3 billion from selling 65 million shares at its initial public offering. The offer price was slightly above the midpoint of its expected price range of $18-$21 per share.

TPG, Canada Pension Plan Investment Board and Leonard Green & Partners took IMS Health private in 2010 for $5.2 billion, including debt.

IMS Health provides prescription data to the pharmaceutical industry, medical device makers, government agencies and other companies in the healthcare sector.

CitiusTech Inc. (Sarasota, Florida)

March 20, 2014

The company entered into definitive agreement on March 20, 2014 to receive $120 million of development capital from General Atlantic, putting the valuation of the company at approximately $460 million.

CitiusTech is a Provider of technology consulting and services to healthcare providers. The company's services include healthcare software development, healthcare interoperability, BI/analytics, care management and consumer health.

Castlight Health, Inc. (San Francisco, California)

March 13, 2014

The company raised $178 million at its initial public offering. The company sold 11.1 million shares which were priced at $16 but soared north of $40 in the first hours of trade.

Castlight Health develops software helps self-insured companies manage health-care costs through tools that let employees shop for the best prices for medical care. Clients include electric car maker Tesla and large Fortune 500 firms like Wal-Mart, Microsoft and Honeywell.

Capital Raises in the Healthcare Technology Sector

Overview of Select Capital Raises

* YTD figures represent total year-to-date capital raises as of

April 30, 2013 & 2014.

110119

194

273

313

361

415

136 139

0

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2007 2008 2009 2010 2011 2012 2013 2013YTD*

2014YTD*

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Moss Adams Capital LLC

Full service investment bank and strategic advisor

Dedicated industry specialties

Mergers and acquisitions; sell-side and buy-side

Recapitalizations and institutional capital raises

Key Attributes

Middle market experts: independent, thoughtful client centered advice

Direct and constant senior level attention

Deep and longstanding relationships with debt and equity capital providers and corporate investors/buyers

Industry specific knowledge enhanced by proprietary access and insight from the Moss Adams LLP client base

Moss Adams LLP

Fully integrated accounting, tax and business advisory firm

100 years old

Dominant in Western US

1,800 employees in 22 offices

16,000 nationwide mid market clients

Consulting and Tax Services include financial due diligence, valuation advisory, international tax planning and compliance, transaction structuring and IT consulting and integration

Approximately 2,000 Healthcare Clients

More than 300 clients represented in the Software, Technology, Mobile & Internet sector

U.S. and International Presence

Affiliates in 80+ countries globally

Firm Overview


TECHNOLOGY

Global Reach Direct international relationships

Moss Adams Capital has a strategic alliance with Mazars Corporate Finance, an international investment bank with 25 offices, to identify cross-border strategic buyers and private equity investors

As a founding member of Praxity, AISBL, a global alliance of independent accounting firms, Moss Adams provides access to trusted expertise in 80+ countries worldwide

Latin America and Caribbean Argentina, Brazil, Cayman islands, Chile, Colombia, Mexico, Puerto Rico, Uruguay, Venezuela

Europe Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Jersey, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom , Ukraine

Asia China, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan, Thailand, Vietnam

Africa Algeria, Angola, Benin, Botswana, Cameroon, Cape Verde, Djibouti, Egypt, Ghana, Ivory Coast, Lesotho, Madagascar, Mauritius, Morocco, Senegal, South Africa, Tunisia, Zambia

Middle East and Indian Subcontinent India, Israel, Lebanon, Pakistan, United Arab Emirates

Australasia Australia, New Zealand

North America United States, Canada


TECHNOLOGY

Business Services

Financial Services

Clean Technology

Consumer Products

Software & IT Services

Food & Beverage

Healthy Living

Technology Equipment & Communications

Transportation & Logistics

Infrastructure & Construction

Industries Services

Majority and Minority Recapitalizations

Sell-Side and Buy-Side M&A

Management Buy Outs

Corporate Divestures

Fairness Opinions

Institutional Placements – Debt and Equity

Healthcare Services and IT

Industrial Manufacturing

M&A and Capital Formation for Mid-Market Companies

Moss Adams Capital

Expertise... Experience... Superior Results


TECHNOLOGY

Moss Adams Capital LLC Assisting Companies at Each Stage of Growth

Growth Capital

Institutional Private Equity

Venture Capital

Growth Phase

Liquidity / Partnering

Mergers / Partnering for Growth

Sale of Company

Management Buy-Out (MBO), Leveraged Recap / Buy-Out (LBO)

Full or Partial Liquidity

Va

lue

Cre

ati

on

Company Lifecycle

Acquisitions

Acquisitions

Divestitures

Spin-offs

Joint Ventures

Private Equity

Private Debt

PIPEs

Advisory

Expansion Capital

Expansion / Liquidity Phase


TECHNOLOGY

Select Healthcare & Healthcare IT Transactions

Services for the above provided by Moss Adams, and/or its principals.


TECHNOLOGY

Contact Us Moss Adams Capital LLC

2040 Main St

Suite 900

Irvine, California 92614

Richard M. Anderson

Managing Director

Burr J. Dalton

Director

Tyler Dale

Vice President

Geoffrey B. Haydon

Vice President

999 Third Avenue

Suite 2800

Seattle, Washington 98104

Harman K. Wales

Managing Director

Wiley P. Kitchell

Managing Director

Healthcare Information Technology€¦ · Share Price 52 Week High - Low Market Cap Enterprise...

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