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HEALTHCARE ITINDUSTRY UPDATE │ Q3 2016

0

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HEALTHCARE IT INDUSTRY UPDATE | Q3 2016

HEALTHCARE IT PRACTICE OVERVIEW

CONTENTS

WHAT WE’RE READING

KEY HEALTHCARE MACROINDICATORS

PUBLIC MARKETS

PUBLIC COMPARABLES

M&A ACTIVITY

PRIVATE PLACEMENT ACTIVITY

IPO ACTIVITY

CONTACTS

Sam HendlerManaging [email protected]+1 (617) 654-2117

Jeff BistrongManaging [email protected]+1 (617) 654-2102

Mike WilkinsManaging [email protected]+1 (415) 271-3411

Thierry MonjauzeManaging [email protected]+44 20 7518 8901

Turner BedrupManaging [email protected]+1 (804) 915-0110

Cheairs PorterManaging [email protected]+1 (804) 915-0130

James ClarkManaging [email protected]+1 (804) 915-0119

Geoffrey SmithManaging [email protected]+1 (804) 915-0195

Dan LinsalataVice [email protected]+1 (617) 654-2122

INTRODUCTION

Harris Williams & Co. is pleased to present our review of Q3 Healthcare ITactivity. This report provides commentary and analysis on current capital markettrends and merger and acquisition dynamics within the Healthcare IT industry.

We hope you find this edition helpful and encourage you to contact us directly ifyou would like to discuss our perspective on current industry trends and M&Aopportunities or our relevant industry experience.

OUR PRACTICE

Harris Williams & Co. is a leading advisor to the Healthcare IT industry. Our globalpractice includes professionals across the firm from Harris Williams & Co.’sTechnology, Media & Telecom Group and Healthcare & Life Sciences Group.


PATIENTS

EMPLOYERS

INSURERS

CARE DELIVERY

ORGANIZATIONS

CLINICIANS

Patient-Facing Solutions

Care Delivery:Operational Efficiency

Care Delivery:Clinical / Acute

Care Delivery:Clinical / Non-Acute

Care Delivery:Clinical / Post-Acute

Pharma & Devices

Revenue CycleManagement

Population Health & RiskManagement

HW&Co. Healthcare IT Taxonomy

1

Please contact HW&Co. for proprietary detailed HCIT market map

HW&CO. Healthcare IT Market Map

http://www.harriswilliams.com/

mailto:[email protected]










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WHAT WE’RE READING

2

Healthcare Informatics 9/28/2016

Boston-based startup Circulation, as Uber’s preferred healthcare platform partner, is launching a digital healthcaretransportation platform as a pilot program at several East Coast acute care and children’s hospitals. The pilot programis designed to reduce the number of missed doctor’s appointments by providing on-demand transportation options toget patients, especially disabled, elderly or low-income patients, to and from medical appointments.

Read the full article here.

UBER, CIRCULATION COLLABORATE ON HOSPITAL PILOT PROGRAM FOR PATIENT TRANSPORTATION

Healthcare IT News 9/15/2016

More than 1,300 health centers across the U.S. and its territories will be given $87 million for information technologyenhancements. The money is meant to to support health IT enhancements aimed at speeding these providers' shifttoward value-based care, through better data exchange, clinical decision support, patient engagement and more,according to HHS.


HHS GIVES $87 MILLION TO BOOST HEALTH CENTER IT

Healthcare Informatics 9/19/2016

A key House Committee held a hearing [in September] to explore how healthcare technology can createefficiencies in care delivery, improve outcomes and reduce cost.


WASHINGTON DEBRIEF: HOUSE COMMITTEE LEADERS PLEDGE HEIGHTENED ATTENTION TO HEALTH IT IN 2017

Healthcare IT News 9/27/2016

New research determined that health apps and devices with a clinical focus are more likely to grow in popularity thisyear than consumer-focused products. “Investment trends in digital health are shifting from consumer wellnessapplications to clinically driven solutions that drive better health outcomes at lower costs,” the report said. “This nextwave focuses on encouraging consumers and patients to change health-related behaviors...”


CLINICAL HEALTH APPS OUTPACING FITNESS TRACKERS AMONG INVESTORS AND INNOVATORS

EHRIntelligence 9/9/2016

In advance of the final rule for the Quality Payment Program — comprising both the Merit-based Incentive PaymentSystem (MIPS) and Alternative Payment Models (APMs) — the CMS has relaxed demands on eligible providers in 2017."In recognition of the wide diversity of physician practices, we intend for the Quality Payment Program to allowphysicians to pick their pace of participation for the first performance period that begins January 1, 2017."


CMS: PROVIDERS CHOOSE PACE FOR QUALITY PAYMENT PROGRAM IN 2017

Bloomberg 8/23/2016

Health insurance startup Oscar Insurance will reevaluate its approach to Obamacare after suffering significant lossesunder the U.S. program and will pull out of two markets next year. “The individual market isn’t working as intended andthere are weaknesses in the way it’s been set up,” CEO Mario Schlosser said in an interview. “We want to focus on themarkets we understand well, we want to focus on the markets where we have our own model in place.


INSURANCE STARTUP OSCAR QUITS TWO MARKETS, RETHINKS OBAMACARE PLANS


http://www.healthcare-informatics.com/news-item/patient-engagement/uber-circulation-collaborate-hospital-pilot-program-patient

http://www.healthcareitnews.com/news/hhs-gives-87-million-boost-health-center-it

http://www.healthcare-informatics.com/article/interoperability/washington-debrief-house-committee-leaders-pledge-heightened-attention

http://www.healthcareitnews.com/news/clinical-health-apps-outpacing-fitness-trackers-among-investors-and-innovators-study-finds

http://www.bloomberg.com/news/articles/2016-08-23/insurance-startup-oscar-quits-markets-rethinks-obamacare-plans

http://www.bloomberg.com/news/articles/2016-08-23/insurance-startup-oscar-quits-markets-rethinks-obamacare-plans

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'12 '13* '14 '15

Stage 0 Stage 1 Stage 2 Stage 3


KEY HEALTHCARE MACRO INDICATORS

3

U.S. HEALTHCARE SPENDING

16.0%

17.0%

18.0%

19.0%

20.0%

-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

'08 '10 '12 '14 '16P '18P '20P '22P '24P

National Health Expenditures

HC Expediture as % of GDP

($ in trillions)

HIGH-DEDUCTIBLE HEALTH PLAN ENROLLMENT

(enrolled lives in millions)

3.2 4.5

6.1 8.0

10.0 11.4

13.5

15.5 17.4

19.7

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15

U.S. AGING POPULATION

(percent age 65 and older)

U.S. EMR ADOPTION - HOSPITAL

(percent adoption by EMRAM stage)

'07 '08 '09 '10 '11 '12 '13 '14 '15



PRIMARY CARE SUPPLY

(number of physicians in thousands)

U.S. EMR ADOPTION - AMBULATORY

(percent adoption by EMRAM stage)

*represents Q1 2014 data (2013 year-end data unavailable)

683723

794 821

57%

49%

37% 33%

'00 '05 '13 '16E

Total Physicians (in 000s) % Independent

12.6% 12.4% 13.0%

16.1%

19.3% 20.0% 20.2%

1990 2000 2010 2020P 2030P 2040P 2050P


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PUBLIC MARKETS

44

HISTORICAL STOCK PERFORMANCE (SEPTEMBER 30, 2011 – SEPTEMBER 30, 2016)

MEDIAN TEV / 2016E EBITDA

MEDIAN REVENUE GROWTH (2015 – 2016E)

MEDIAN EBITDA MARGIN (2016E) MEDIAN EBITDA GROWTH (2015 – 2016E)

MEDIAN CAPEX / REVENUE (2016E)

MEDIAN REVENUE GROWTH (2012 – 2015)

12.7x

15.0x

21.0x

14.1x

12.1x

Clinical / Administrative

Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

5.0%

2.9%

3.3%

4.7%

3.7%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

14.0%

15.3%

18.9%

12.6%

9.3%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

23.5%

30.8%

24.8%

36.4%

25.3%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

13.6%

6.4%

4.1%

27.1%

4.4%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

14.0%

6.7%

17.6%

31.3%

10.4%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

0

50

100

150

200

250

300

350

400

450

500

Clinical & Administrative Payer-Focused Pharma Consumer Healthcare Euro HCIT S&P 500


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VALUATION AND OPERATING METRICS

PUBLIC COMPARABLES

5

As of September 30, 2016 ($ in Millions, except per share amounts)

Consolidated Median $1,898 $1,950 87.0% $490 5.2% $94 19.3% 16.8x 13.5x

Pharma

Quintiles Transnational Holdings, Inc. $9,211 $10,890 $77.38 98.1% $5,998 4.4% $864 14.4% 12.6x 12.4x

Veeva Systems Inc 5,465 4,986 40.13 94.2% 472 23.7% 94 20.0% 52.8x 34.3x

PAREXEL International Corporation 3,603 3,855 67.74 92.5% 2,429 2.3% 365 15.0% 10.6x 10.0x

Medidata Solutions, Inc. 3,183 3,121 55.37 98.4% 421 7.2% 51 12.1% 61.2x 29.6x

Pharma Median $4,534 $4,421 96.2% $1,450 5.8% $230 14.7% 32.7x 21.0x

Consumer Healthcare

WEX Inc. $4,455 $5,407 $104.28 98.5% $879 2.8% $303 34.5% 17.9x 14.1x

WebMD Health Corp. 1,911 1,935 49.02 72.6% 671 5.4% 176 26.2% 11.0x 8.5x

HealthEquity Inc 2,048 1,899 34.93 97.6% 155 33.6% 48 30.9% 39.8x 31.5x

Benefitfocus, Inc. 1,154 1,161 38.91 86.5% 212 14.7% (34) NM NM NM

Castlight Health, Inc. 448 322 4.36 79.0% 87 15.7% (72) NM NM NM

Connecture Inc. 39 55 1.74 27.8% 88 (8.1%) (3) NM NM NM

Consumer Healthcare Median $1,532 $1,530 82.7% $184 10.1% $22 30.9% 17.9x 14.1x

Euro HCIT

CompuGroup Medical SE $2,382 $2,750 $44.75 97.9% $603 0.1% $121 20.1% 22.7x 19.3x

EMIS Group plc 819 819 12.94 71.9% NA NA NA NM NM 12.1x

NEXUS AG 324 293 20.58 93.9% 113 4.9% 21 18.7% 13.9x 11.8x

Euro HCIT Median $819 $819 93.9% $358 2.5% $71 19.4% 18.3x 12.1x

Stock Performance

Current % of LTM TEV / EBITDA

Mkt Cap TEV Price LTM High Revenue % Growth EBITDA Margin LTM 2016


EMR

Cerner Corporation $20,762 $20,717 $61.48 90.0% $4,657 19.8% $1,434 30.8% 14.4x 12.7x

athenahealth, Inc. 4,814 4,975 122.37 71.8% 1,012 21.2% 139 13.7% 35.8x 21.1x

Allscripts Healthcare Solutions, Inc. 2,429 3,914 13.02 82.5% 1,432 4.3% 219 15.3% 17.9x 13.5x

Quality Systems, Inc. 695 752 11.30 64.6% 493 (0.4%) 76 15.4% 9.9x 8.8x

Computer Programs and Systems, Inc. 350 501 25.86 43.7% 227 17.6% 36 15.9% 13.9x 8.8x

Median $2,429 $3,914 71.8% $1,012 17.6% $139 15.4% 14.4x 12.7x

RCM / Performance

Nuance Communications, Inc. $3,946 $5,792 $14.11 64.7% $1,947 0.2% $394 20.2% 14.7x 8.3x

Premier Inc. 1,494 4,384 31.52 83.9% 1,163 6.6% 354 30.5% 12.4x 9.4x

Advisory Board Company 1,728 2,279 42.92 78.3% 803 4.5% 222 27.6% 10.3x 11.8x

Evolent Health Inc 1,014 1,110 22.71 84.6% 192 98.6% (46) NM NM NM

Median $1,611 $3,331 81.1% $983 5.5% $288 27.6% 12.4x 9.4x

Other Administrative

Omnicell, Inc. $1,363 $1,547 $37.68 93.0% $599 23.7% $76 12.6% 20.5x 14.2x

HealthStream, Inc. 837 698 26.37 93.6% 219 4.6% 31 14.1% 22.6x 20.1x

Vocera Communications, Inc. 455 337 16.84 98.7% 113 8.3% (11) NM NM NM

Tabula Rasa Healthcare, Inc. NA NA NA NA 80 NA 10 12.2% NM NM

Median $837 $698 93.6% $166 8.3% $20 12.6% 21.6x 17.1x

Clinical / Administrative Median $1,428 $1,913 83.2% $599 7.5% $76 15.4% 14.6x 12.3x

Payer-Focused

Inovalon Holdings, Inc. $2,434 $1,964 $15.94 66.8% $453 3.5% $117 25.9% 16.8x 14.6x

HMS Holdings Corp. 1,886 1,896 22.33 93.0% 490 3.4% 109 22.3% 17.3x 15.3x

Cotiv iti Holdings, Inc. 2,712 3,463 30.08 87.5% NA NA NA NM NM 14.4x

Payer-Focused Median $2,434 $1,964 87.5% $471 3.4% $113 24.1% 17.0x 14.6x


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M&A TRANSACTION ACTIVITY

6

Announced

Date Target Acquirer Business Description

Enterpise

Value

Implied

EV/Revenue

Implied

EV/EBITDA

Last 12 Months as of September 30, 2016 ($ in Millions)

*HW&Co. confidential transaction

*Unpublished information

10/06/16Convey Health Solutions,

Inc.New Mountain Capital Prov ider of health insurance support serv ices. * * *

10/04/16 Emmi Solutions LLC Wolters Kluwer NV Provider of medical information through media platforms. $170.0 5.9x *

09/22/16 Creehan & Co. Corp. Inovalon Holdings, Inc.Prov ider of software application platforms and

implementation of serv ices.$130.0 4.8x *

09/12/16Anthelio Healthcare

Solutions, Inc.ATOS SE

Provider of IT, health information management, EHR, and

analytics solutions to healthcare organizations. $275.0 1.4x *

09/11/16 exocad GmbH The Carlyle Group Prov ider of dental computer aided design, scanning

software, dental CAM, and dentalshare solutions.* * *

08/22/16 BioClinica, Inc. Cinven Group Ltd.Prov ider of technology enabled clinical trial

management serv ices.$1,400.0 5.6x 14.0x

08/09/16 Press Ganey Holdings, Inc. EQT Partners ABProvider of patient-experience measurement and

performance analytics solutions.$2,284.5 6.6x 21.4x

07/21/16 Connected Benefits GoHealth, LLC Provider of employee benefits management software. * * *

07/20/16 Wellcentive, Inc. Royal Philips NVProvider of population health management and data

analytics solutions.* * *

07/13/16 Imprivata, Inc. Thoma Bravo LLCProvider of HCIT authentication management security

solutions.$442.5 3.5x NA

07/13/16 Valence Health, Inc. Evolent Health, Inc. Prov ider of health system solutions. $145.0 2.0x 10.0x

06/30/16 HY Holdings, Inc. Teladoc, Inc.Prov ider of mobile patient engagement solutions to

employers.$155.8 * *

06/15/16 Navicure, Inc. Bain Capital LPProv ider of revenue cycle management solutions to

physicians, billing companies, and hospitals.* * *

06/13/16 MedHOK, Inc. The Hearst CorporationProvider of quality and compliance solutions for health

plans and accountable care organizations.* * *

06/13/16Cardon Healthcare

Holdings LLCMEDNAX, Inc.

Prov ider of third party eligibility and revenue cycle

management serv ices for hospitals. * * *

05/04/16 DocuTAP, Inc. Warburg Pincus LLCProvider of EMR, practice management, and revenue

cycle management software for urgent care.* * *

05/03/16 IMS Health Holdings, Inc.Quintiles Transnational

Holdings Inc.

Prov ider of information and analytics solutions to the

pharmaceutical and healthcare industries.$12,912.1 4.2x 17.1x

04/26/16 Withings SA Nokia CorporationProvider of digital health and wellness smart devices and

applications.$191.6 * *

04/25/16 Verisk Health, Inc. Veritas CapitalProv ider of risk assessment and decision analytics

serv ices to the global healthcare industry.$820.0 * *

04/14/16Curaspan Health Group,

Inc.Cardinal Health, Inc.

Prov ider of discharge and care transition solutions for

coordinated care.* * *

03/23/16Netsmart Technologies,

Inc.

GI Partners; Allscripts

Healthcare Solutions, Inc.

Prov ider of SaaS-based enterprise software solutions

supportingintegrated, coordinated care delivery.$950.0 * *

02/22/16 Brightree LLC Resmed Corp.Prov ider of cloud-based business process management

software to the post-acute care industry.$800.0 8.3x *

02/18/16Truven Health Analytics,

Inc.

International Business

Machines Corp.

Prov ider of analytic solutions and serv ices for healthcare

industry.$2,600.0 * *

02/05/16 CenTrak, Inc. Halma PlcProvider of real-time location systems to healthcare

facilities.$140.0 3.2x *


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M&A TRANSACTION ACTIVITY

7

Announced

Date Target Acquirer Business Description

Enterpise

Value

Implied

EV/Revenue

Implied

EV/EBITDA


*HW&Co. confidential transaction

*Unpublished information

02/03/16 AlphaimpactRX, Inc. IMS Health Holdings, Inc.Provider of primary research-based insights and analytics

to healthcare and life sciences organizations.* * *

01/11/16 Healthline Media Summit Partners LLPProvider of online medically-rev iewed health and

wellness information for consumers.* * *

12/18/15 Trover Solutions, Inc. New Mountain CapitalProvider of recovery serv ices to insurance and

healthcare companies.* * *

12/18/15 Equian LLC New Mountain CapitalProvider of reimbursement analysis and payment integrity

solutions.$225.0 2.6x *

12/04/15 PDR Network LLC PSKW, LLCProvider of behavior-based prescription management

programs to the healthcare industry.* * *

12/03/15Silverlink Communications

LLCWelltok, Inc.

Provider of consumer health engagement programs to

educate and support healthcare consumers.* * *

11/25/15 Healthland, Inc.Computer Programs &

Systems, Inc.

Provider of healthcare information systems for rural and

critical access hospitals.$250.0 * *

11/02/15 MedAssets, Inc.Pamplona Capital

Management

Provider of technology-enabled performance

improvement solutions for providers and payers.$2,656.3 3.5x 12.2x

10/30/15 HealthFusion, Inc. Quality Systems, Inc.Provider of web-enabled computing software products

and communications serv ices to health care providers.$190.0 * *

10/29/15 Aesynt, Inc. Omnicell, Inc.Provider of pharmacy automation and information

management solutions for hospitals and health systems.$275.0 1.5x 13.8x

10/26/15 Atlas Medical Software Roper Technologies, Inc.Provider of cloud-based clinical connectiv ity and

process integration solutions.$48.0 * *

10/26/15 Clinisys Group Ltd. Roper Technologies, Inc.Provider of clinical laboratory information management

software solutions (d.b.a. CliniSys).$261.0 * *

10/22/15NextGen, Hospital Solutions

Div ision

QuadraMed Affinity

Corporation

Provider of hospital information systems (formerly Hospital

Div ision, NextGen Healthcare Information Systems).* * *

10/15/15 Benaissance LLC WEX, Inc.Provider of SaaS-based financial management system for

health benefits administration.$80.0 6.0x *

10/01/15 Empowered Benefits Inc. Aflac, Inc.Provider of SaaS-based private benefits exchange and

benefits administration solutions.* * *


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8


Announced

Date Target Lead Investor(s) Business Description

Round /

Stage

Money

Raised

Raised to

Date

09/27/16Azalea Health Innovations,

Inc.Undisclosed Investors

Prov ider of an electronic health records system for

medical practices. C $10.8 $22.8

09/26/16 InstaMed Holdings, Inc.Carrick Capital Partners

LLC

Provider of a payments network for the healthcare

industry.

Late-Stage

VC$50.0 $112.3

09/21/16 Catalyze, Inc. Lewis & Clark Venture

Capital

Prov ider of hosted core infrastructure required to build

modern apps for health and wellness. B $6.5 $31.1

08/30/16 Shyft Analytics, Inc.Health Enterprise Partners;

Milestone Venture Partners

Prov ider of data, analytic and mobile solutions for the

global life sciences industry. B $12.5 $31.5

08/30/16 Zillion Group, Inc.Twin Focus Equity Partners

LLC

Provider of online weight loss and related disease

prevention programs. C $28.0 $32.1

08/24/16 ClearCare, Inc. Battery VenturesProv ider of Web and mobile platform for administration of

home-care agencies. D $60.0 $75.6

08/11/16 Accolade, Inc.AH Capital Management;

Madrona Venture Group

Provider of consumer healthcare information serv ices. Late-Stage

VC$70.0 $142.2

08/09/16Wound Technology

Network, Inc.

Aldrich Capital Partners

LLC

Provider of a telehealth based platform that offers

wound care serv ices. A $40.0 $40.0

08/09/16 PreViser Corp. Undisclosed InvestorsProv ider of web-enabled diagnostic decision support

tools for dentists and dental hygienists. D $2.0 $5.2

08/08/16 Aligned Telehealth, Inc.SV Life Sciences Advisers

LLP

Provider of telemedicine and healthcare management

serv ices. A $12.0 $12.0

08/04/16 Elation EMR, Inc.Draper Fisher Jurvetson

Management

Prov ider of web-based electronic medical record

systems. B $15.0 $17.0

08/01/16 StatRad LLC UndisclosedProvider of teleradiology serv ices for radiology groups

and hospitals. NA $29.2 $29.2

07/21/16 AristaMD, Inc.Avalon Ventures;

Correlation Management

Provider of business management consulting and

advisory serv ices for the health care industry. A $11.0 $13.1

07/15/16 Medsphere Systems Corp. UndisclosedProvider of an open-source electronic health-record

system.

Late-Stage

VC$15.3 $53.5

07/13/16 Caremerge LLC GE VenturesProv ider of a mobile/web-based communication and

coordination platform. B $14.0 $21.1

07/13/16 Patient Steward, Inc.Bessemer Venture Partners,

NEA, Maverick Ventures

Prov ider of software and mobile applications for patient

record monitoring. A $15.0 $17.1

07/12/16 Avizia, Inc.Blu Venture Investors;

Middleland Capital

Prov ider of telemedicine solutions. A $11.0 $18.5

06/14/16 Procured, Inc.HCA Holdings, Inc.;

Heritage Group LLC

Provider of data-driven technologies that improve

patient care. B $10.0 $15.1

06/06/16 Valify LLCFrist Cressey Ventures LLC;

Step 5 Capital

Prov ider of purchased serv ices intelligence tools for

healthcare organizations. A $2.0 $2.8

05/26/16 Lumiata, Inc.Sandbox RLD; Khosla

Ventures; Intel Capital

Prov ider of predictive analytics around medical science

and patient data. B $10.0 $20.0

05/12/16 Umbie Health Corp. Undisclosed InvestorsProv ider of cloud-based software for dental practice

management. A $2.6 $2.8

04/08/15 Sharecare, Inc.Wellington Management

Co. LLP

Provider of a health and wellness engagement platform.D $20.0 $34.0

05/11/16 Groupe Interaction SASBpifrance, Audacia SAS,

Aquitaine Limousin Poitou

Provider of digital communication and e-learning tools to

the healthcare and pharmaceutical industries. NA $5.7 $5.7

05/02/16 WeCounsel Solutions LLCPoint Judith, Longmeadow

Capital Partners, CVH

Provider of telehealth solutions connecting mental health

prov iders to their clients online. A $3.5 $4.1


PAGE |


9


Announced

Date Target Lead Investor(s) Business Description

Round /

Stage

Money

Raised

Raised to

Date

04/15/16 Proteus Digital Health, Inc. Undisclosed InvestorsProv ider of wearable digital wellness and medication

adherence solutions.

Late-Stage

VC$50.0 $419.7

04/13/16 CareDox, Inc.Prolog Ventures, TEXO

Ventures

Prov ider of care coordination solutions for schools to

manage and share medical information.

Late-Stage

VC$2.8 $10.7

04/13/16 OnShift, Inc. Health Velocity CapitalProv ider of staff scheduling and labor management

software solutions to the post-acute sector.D $18.0 $31.0

04/12/16 Livongo Health, Inc.Merck, Cowen Pvt. Inv.,

Sapphire Ventures

Prov ider of consumer digital health and diabetes

coaching tools.C $44.5 $84.5

04/14/16 Quartet Health, Inc.GV (formerly Google

Ventures)

Prov ider of cloud-based behavioral healthcare

collaboration plaform.B $40.0 $47.0

03/11/16 Connecture, Inc. Francisco PartnersProv ider of cloud-based consumer shopping, enrollment,

and retention platform for health plans.PIPE NA $111.8

02/25/16 Viv ify Health, Inc. UPMC Health SystemProvider of cloud-based mobile healthcare platform for

remote patient monitoring and v irtual care.B $2.0 $24.0

02/29/16 Health Catalyst LLCNorwest Venture Partners,

UPMC Health System

Provider of warehousing, analytics, and outcomes

improvement solutions to healthcare organizations.

Late-Stage

VC$70.0 $222.0

01/15/16Babylon Healthcare

Serv ices Ltd.Investment AB Kinnevik

Prov ider of a mobile appointment scheduling and clinical

record access solution.A $25.0 $25.0

01/12/16 NantHealth, LLC Return InvestorsProv ider of cloud-based intelligent clinical operating

systems for reducing administrative time and tasks.

Late-Stage

VC$52.5 $764.5

01/12/16 Syapse, Inc. Ascension VenturesProv ider of precision medicine software solutions to

academic and community healthcare providers.C $25.0 $39.5

12/31/15 MonDocteur SAS Lagardere SCAProvider of an online medical consultation platform to the

French healthcare market.NA NA $13.0

12/17/15 WellDoc, Inc.Samsung Ventures, Merck

Global Health Innovation

Provider of consumer-focused chronic disease

management solutions.B $22.0 $47.7

12/07/15 Twine Health, Inc. Khosla Ventures Prov ider of cloud-based medical consultation software. A $6.8 $7.3

12/07/15 Welltok, Inc. Return InvestorsProv ider of healthcare "gaming" and patient

engagement solutions.

Late-Stage

VCNA $192.0

12/02/15 eVariant, Inc. The Goldman Sachs GroupProvider of SaaS-based CRM and marketing automation

software for hospitals and health systems.C $42.3 $68.6

11/12/15 HY Holdings, Inc. Frontier CapitalProv ider of personalized online brain-based health

programs for employees.

PE Growth /

ExpansionNA $33.0

10/14/15 Lyra Health, Inc.Greylock Partners,

Venrock

Provider of behavioral health analytics and care

coordination software.A $35.0 $39.1

10/14/15 DrFirst.com, Inc. The Goldman Sachs GroupProvider of medication adherance, e-prescribing, and

care coordination solutions.

PE Growth /

Expansion$25.0 $42.0


PAGE |

IPO ACTIVITY

10


Enterprise Value

Offer Date Issuer Description Raised Offer Date Today % Change

09/28/16 Tabula Rasa Healthcare, Inc.Provider of personalized medication therapy management and pharmacy

serv ices to reduce medication risk. $59.3 $299.1 $271.2 (9.3%)

05/25/16 Cotiv iti Holdings, Inc. Provider of analytics-driven healthcare payment accuracy solutions. $245.8 $2,414.3 $3,489.0 44.5%

06/04/15 Evolent Health, Inc. Provider of healthcare delivery and payment solutions in the United States. $224.8 $788.5 $1,153.5 46.3%

05/20/15 Press Ganey Holdings, Inc.Provider of patient experience and caregiver performance measurement

and advisory solutions.$255.9 $1,876.6 $2,297.7 22.4%


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REPRESENTATIVE HW&CO. HEALTHCARE TECHNOLOGY TRANSACTIONS

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a portfolio company of


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a division of



a division of


a portfolio company ofhas been acquired by




has received a minority investment from

has been acquired byhas been acquired by




has been acquired byhas been acquired by

a subsidiary ofa portfolio company of









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