J.P.Morgan Software Investment Banking
Recent transaction activity in Healthcare Technology
Microsoft
Transaction date: April 2021
Transaction size: $17.3 billion
Transaction multiple: 12.2x Revenue / 44.8x EBITDA
Percentage premium: 23%
DASSAULT
SYSTEMES
NUANCE
UNITEDHEALTH GROUP
OPTUM
Transaction date: June 2019
Transaction size: $5.8 billion
Transaction multiple: 7.8x Revenue/31.2x EBITDA
Percentage premium: 21%
medidata
Note: Based on 1-yr fwd multiples
J.P.Morgan
CHANGE
HEALTHCARE
Transaction date: January 2021
Transaction size: $13.1 billion
Transaction multiple: 4.3x Revenue / 14.7x EBITDA
Percentage premium: 41%
Strategic rationale
Accelerates Microsoft's healthcare industry cloud strategy
Builds upon the commercial partnership established between the companies in October 2019 to accelerate delivery
of ambient intelligence technologies in the doctor's office
Doubles Microsoft's healthcare provider TAM, bringing the company's total healthcare TAM to nearly $500 billion
Creates a true integrated, end-to-end business platform for the life sciences industry
Combines Medidata's leading position in clinical trials and commercialization solutions with Dassault's life sciences
solutions on the 3DEXPERIENCE collaborative platform
Facilitates new therapeutic innovations by leveraging combined company's knowledge and know-how
Complementary capabilities help customers more effectively connect and simplify core clinical, administrative and
payment processes
Enhances clinicians' ability to make the most informed and clinically advanced patient care decisions, more quickly
and easily
Accelerates healthcare industry's movement to a more modern, real-time and transparent payment system for
payers, providers and consumers
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