HealthTech Opportunities & M&A

World Financial Symposiums WFS is an international organization dedicated to educating

technology leaders through monthly, Market Spotlight webcasts and day-long

Growth and Exit Strategies for Software and IT Companies conferences.

Upcoming Events:Growth and Exit Strategies for Software and IT Companies

- Toronto- 18 June, 2015 8:00 – 17:00

www.wfs.com

Nat Burgess - Moderator

Nat joined Corum in 1996 and brings a diverse background in technology M&A and law. While with the Enforcement Division of the U.S. Securities and Exchange Commission, Nat helped identify and build cases against securities fraud schemes. With the Strategic Development Division of Morgan Stanley's M&A group, Nat worked on cross-border acquisitions of U.S. and European companies by Japanese firms, and on financings by large Japanese public companies. Nat moved to Morgan Stanley's Tokyo office, where he reported directly to the President of Morgan Stanley, Japan Ltd. and focused exclusively on cross-border M&A.

After Morgan Stanley, Nat co-founded Postcard Software, a creator of advertiser-driven bilingual (English and Japanese) Internet content. At Activision, Nat led the company's on-line business development.

Nat earned an undergraduate degree in Japanese literature from Yale College and a law degree from UCLA. While in law school, Nat wrote articles for the International Forum at Yale, Tokyo Journal.

• Societal and Technological Changes• Market Update • Notable Transactions• Funding Environment (StartupHealth)• From the Trenches – Patrick Hall on the e-MDs

Acquisition• M&A Success in the Current Market• Q&A

Agenda

• Compliance in the cloud• Interoperability • Analytics (ACO)• Reimbursement Compliance• Healthcare Exchanges• New tools for diagnosis and treatment• Genetic Screening• Mobile Engagement • Telemedicine• Personal Data Clouds

Technological Changes

• Demographics: aging population taking a greater interest in health

• Dr. Google: easier access to information allows patient to take control of their own health

• More chronic illnesses, less affordable care• Hospital consolidation• Consolidation of primary care into hospital• Disappearance of primary care providers for

millennials

Societal Changes

“Unicorns”• April 2015: Oscar Health Insurance raised $145M at a

$1.5B valuation• February 2015: NantHealth raised $45M bringing total

raised to $525M ($4 billion IPO aspirations)• June 2014: Proteus Digital Health raised $172M at a

$1.1B valuation• September 2013: Practice Fusion raised $70M at a

$700M valuation

Yasmin joined Corum Group in 2015 as a research analyst. Previously she worked as a finance and operations coordinator at a financial technology startup and provided consultation services to an institutional investing advisory firm. Yasmin graduated from the Foster School of Business at the University of Washington, specializing in Finance and International Business.

Yasmin KhodamoradiResearch Analyst – Corum Group

Healthcare Technology Companies Peer Group

Source: Capital IQ

Source: Capital IQ

Sold to

Target: Fastrack Healthcare SystemsAcquirer: Mediware Information SystemsDate Announced: June 2013Transaction Value: undisclosed

-Software for home medical equipment (HME) providers

-Doubled customer base in the HME, home infusion, and home health markets

Source: Capital IQ

Geographic Breakdown

Source: Capital IQ

Big Data/ Analytics

Growth in Exits by Segment (2013-2014)

Mobile

EHRPractice Management

Payor/ InsuranceDiagnostics

Genomics

Sold to

Target: RazorInsightsAcquirer: athenahealthDate Announced: January 2015Transaction Value: $40 million

-Web-based EHR and revenue management software for rural, critical access and community hospitals

-Will expand presence in new segment

Sold to

Target: Caretech AB [Sweden]Acquirer: Doro AB [Sweden]Date Announced: December 2014Transaction Value: $31.76 million

-Senior citizen mobile telehealth and remote medical monitoring, wearables, alert systems and software

-Will focus on entering the telecare sector and synergies with current senior mobile device business

Sold to

Target: TheraDoc Inc.Acquirer: Premier Inc.Date Announced: August 2014Transaction Value: $117 million

-Medical clinical infection surveillance software, medical EDI, analytics software and infections databases

-Positions Premier at the top of the clinical surveillance market, create next-gen predictive safety solutions

Sold to

Target: Bina Technologies Acquirer: Roche AG [Switzerland]Date Announced: December 2014Transaction Value: Undisclosed

-Big data genomic analytics software and hardware for cancer and inherited disease research

-Will expand genomic analysis solutions portfolio

Sold to

Target: SimbionixAcquirer: 3D SystemsDate Announced: July 2014Transaction Value: $120 million

-Computer-assisted 3D surgical training and simulation hardware and software

-Extends first mover advantage in 3D printing enabled personalized medicine

Sold to

Target: OrthoviewAcquirer: MaterialiseDate Announced: October 2014Transaction Value: $14.25 million

-Digital pre-operative planning and templating solutions for orthopedic surgeons

-Expands solutions offered to surgeons

Sold to

Target: CaparioAcquirer: EmdeonDate Announced: June 2014Transaction Value: $115 million

-Web-based insurance claim processing and revenue management SaaS

-Expands Intelligent Healthcare Network and enhances revenue management platform

Sold to

Target: ProtoGeo (maker of Moves App)Acquirer: FacebookDate Announced: April 2014Transaction Value: Undisclosed

-Health and fitness tracking mobile application

-Possible telemedicine angle

Sold to

Target: MedXTAcquirer: BoxDate Announced: October 2014Transaction Value: $3.8 million

-Medical image sharing and collaboration

-Increased interoperability

Katya Hancock

Katya is the Strategic Partnerships Director at StartUp Health. Katya is a passionate advocate for health entrepreneurs and an active member of the startup technology ecosystem in New York City. At StartUp Health, Katya focuses on building strategic partnerships that unite entrepreneurs with key industry stakeholders focused on health and wellness innovation.

Prior to StartUp Health, Katya worked in the technology industry as a key team member at three financial tech start-ups, helping two of them grow to be acquired by Fortune 500 companies. Her experience includes strategic partnerships and business development, enterprise sales, channel sales partnerships, product management, marketing, and capital raising.

Director of Strategic Partnerships – StartUp Health

Patrick Hall

Patrick Hall has nearly two decades of expertise in the healthcare software industry. He oversees the development of business partnerships, revenue cycle and practice management product development, and revenue cycle services. He is also involved in sales, marketing, and customer support. Patrick has been involved in projects that include to HIPAA ANSI X.12 electronic data interchange formats, the NPI transition, printed claim form changes for CMS-1500 and UB formats, and more recently ICD-10 impacts on the practice management products. He joined the company in 1997 as a result of e-MDs' EasyWare acquisition. Patrick is a graduate of The Cape Peninsula University of Technology (formerly Cape Technikon) in Cape Town, South Africa where he received the Marketer of the Year award.

Executive Vice President, Business Development – e-MDs

M&A Success in Today’s Market

1.Run a smart process• Huge market, focused players• Be prepared

2.Yesterday’s skills may not win tomorrow’s battles• Dynamic market• New challenges

3.Understand your value• Recurring revenue• Customers• IP • Domain Expertise

4.Be Realistic5.Consider Private Equity

• Less disruptive, less risk of overlap and redundancies than with strategics• Building significant companies

Q&A• We welcome your questions!

• Use Q&A window on right side• Submit to queue at any time• Ask “all panelists” – see “ask” option above text-entry

box