PE HUB Healthcare Wire Highlights, 8.29.19

Warburg to take control of WebPT; Where are all the PE healthcare deals?

Chris and Sarah are off seeing the world, so I, Luisa, will be your healthcare MC today.

It feels like private equity is continuing its drive to buy and sell anything healthcare. But the data tells a different story. So far in the third quarter, we’ve seen 58 private equity healthcare deals collectively valued at $8.9 billion, according to PitchBook. This compares with 232 deals for all of the third quarter in 2018, valued at $25.8 billion.

With roughly one month left in Q3, it doesn’t appear as though healthcare private equity M&A will catch up. Hubsters, why is this? Have all the good companies been sold? Recession fears causing buyers to be cautious? Email your thoughts to me

The biggest PE healthcare deal so far this year is AthenaHealth, PitchBook said. Veritas Capital and Elliot Managementagreed to buy the US healthcare software maker for $5.7 billion. The deal closed in February.

When it comes to fintech deals in healthcare, the largest transaction so far is InstaMed. In May, JP Morgan Chase agreed to buy the healthcare payments company for about $600 million. VPAY, which is also on the block (FTV Capital is the seller), may surpass this transaction. I’m hearing some interesting things about this process. What do you know, Hubsters?

August is always slow for everything, M&A included, but there was still activity in private equity healthcare this week. One of the more notable was Warburg Pincus‘s purchase of a majority stake in WebPTBattery Ventures is the seller. WebPT sells software to independent therapy providers.

Water Street Healthcare and JLL picked up Thread, a virtual research platform. Researchers can use the Thread platform to collect data remotely, including at a participant’s home. While I’m all for not visiting the doctor, this does raise privacy concerns for me. (Am I the only one who thinks this sounds like a Steven Spielberg movie?)