Harris Williams | Preeminent Middle Market …...Harris Williams & Co. is pleased to present our review of Q1’17 Healthcare IT activity. This report provides commentary and This

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

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HEALTHCARE ITINDUSTRY UPDATE │ MARCH 2017

PAGE |

HEALTHCARE IT

INDUSTRY UPDATE | MARCH 2017

HARRIS WILLIAMS & CO. OVERVIEW

1

CONTENTS WHAT WE’RE READING

KEY HEALTHCARE MACRO INDICATORS

PUBLIC MARKETS

PUBLIC COMPARABLES

M&A ACTIVITY

PRIVATE PLACEMENT ACTIVITY

IPO ACTIVITY

CONTACTSSam Hendler

Managing Director

[email protected]

+1 (617) 654-2117

Jeff Bistrong

Managing Director

[email protected]

+1 (617) 654-2102

Mike Wilkins

Managing Director

[email protected]

+1 (415) 271-3411

Thierry Monjauze

Managing Director

[email protected]

+44 20 7518 8901

Turner Bedrup

Managing Director

[email protected]

+1 (804) 915-0110

Cheairs Porter

Managing Director

[email protected]

+1 (804) 915-0130

James Clark

Managing Director

[email protected]

+1 (804) 915-0119

Geoffrey Smith

Managing Director

[email protected]

+1 (804) 915-0195

Dan Linsalata

Vice President

[email protected]

+1 (617) 654-2122

INTRODUCTION

Harris Williams & Co. is pleased to present our review of Q1’17 Healthcare IT activity. This report provides commentary andanalysis on current capital market trends and merger and acquisition dynamics within the Healthcare IT industry.

We hope you find this edition helpful and encourage you to contact us directly if you would like to discuss our perspective oncurrent industry trends and M&A opportunities or our relevant industry experience.

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 Cycle Management

Population Health & Risk Management

HW&Co. Healthcare IT Taxonomy

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

HW&CO. Healthcare IT Market Map

OUR PRACTICE

Harris Williams & Co. is a leading advisor to the Healthcare IT industry. Our global practice includes professionals across the firmfrom Harris Williams & Co.’s Technology, Media & Telecom Group and Healthcare & Life Sciences Group.

mailto:[email protected]









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HEALTHCARE IT


WHAT WE’RE READING

2

Health Data Management 3/23/2017

A survey of more than 300 healthcare and health information technology professionals finds that two-thirds of respondents are not prepared for the MACRA program to improvethe quality of care while at the same time cutting costs through value-based reimbursement.

Read the full article here.

PROVIDERS ARE GENERALLY UNPREPARED FOR MACRA REPORTING

Healthcare IT News 3/14/2017

A new report says poor information management and faulty CDS implementation pose risks to patients. It also raises concerns about patient identification and processimprovement activities.


TOP 10 PATIENT SAFETY CONCERNS FOR 2017, ACCORDING TO ECRI

Health Data Management 3/14/2017

There is more confusion surrounding PHM than we as an industry would like to accept. If we can’t define the concept more cogently and concisely, we will have a difficult timeoffering a plan or solution to effectively manage population health.


WHY PROVIDERS NEED A CONSISTENT DEFINITION FOR POPULATION HEALTH MANAGEMENT

Healthcare IT News 3/22/2017

Healthcare organizations are going to need all of them to compete and thrive in the next generation of healthcare, according to Onpointe Chief Medical Information OfficerTerry Sullivan.


ANALYTICS, ARTIFICIAL INTELLIGENCE, BIG DATA AND MACHINE LEARNING ARE BECOMING IT REQUIREMENTS

Computerworld 3/10/2017

Apple’s plans for digital health are profound. As it pursues them, it is making huge investments in original research, data analysis, patient records, and sensor development.


APPLE WANTS TO PROMOTE HEALTH APPS THAT WORK

Modern Healthcare 2/1/2017

Advisory Board Co., which recently trimmed 5.7% of its workforce, announced it is considering a potential sale…to maximize shareholder value, which could result in the sale ofall or part of the company.


ADVISORY BOARD CO. CONSIDERING POTENTIAL SALE

TheStreet 2/16/2017

Shares of WebMD Health rose 3% in after-hours trading Thursday, Feb. 16, after the health information services company said it is exploring strategic alternatives, among them apotential sale of all or part of the company.


WEBMD PUTS ITSELF UP FOR SALE

https://www.healthdatamanagement.com/news/providers-are-generally-unprepared-for-macra-reporting?feed=00000152-0d5e-df23-add6-5f5f05f30000&regconf=1

http://www.healthcareitnews.com/news/top-10-patient-safety-concerns-2017-according-ecri

https://www.healthdatamanagement.com/opinion/why-providers-need-a-consistent-definition-for-population-health-management?feed=00000152-0d5e-df23-add6-5f5f05f30000

http://www.healthcareitnews.com/news/cmio-lists-4-tech-requirements-post-acute-care-facilities-analytics-artificial-intelligence-big

http://www.computerworld.com/article/3179374/apple-ios/apple-wants-to-promote-health-apps-that-work.html

http://www.modernhealthcare.com/article/20170207/NEWS/170209933

https://www.thestreet.com/story/14005993/1/webmd-puts-itself-up-for-sale.html

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HEALTHCARE IT


PUBLIC MARKETS(7)

3

MEDIAN REVENUE GROWTH (2013 – 2016) MEDIAN REVENUE GROWTH (2016 – 2017E) MEDIAN EBITDA MARGIN (2017E)

MEDIAN EBITDA GROWTH (2016 – 2017E) MEDIAN CAPEX / REVENUE (2017E) MEDIAN TEV / 2017E EBITDA

HISTORICAL STOCK PERFORMANCE (MARCH 31, 2012 – MARCH 31, 2017)

16.2%

6.7%

10.2%

30.6%

5.3%

Clinical / Administrative

Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

8.8%

8.8%

20.4%

16.7%

10.7%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

18.2%

24.7%

25.2%

33.0%

23.9%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

9.8%

12.7%

22.0%

3.0%

18.1%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

3.8%

5.5%

4.1%

4.2%

5.9%


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

12.4x

13.5x

17.2x

21.4x

12.2x


Payer-Focused

Pharma

Consumer Healthcare

Euro HCIT

0

50

100

150

200

250

300

350

400

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

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HEALTHCARE IT


KEY HEALTHCARE MACRO INDICATORS

4

U.S. HEALTHCARE SPENDING(1)(2)

($ in trillions)

U.S. AGING POPULATION(3)

(percent age 65 and older)

HIGH-DEDUCTIBLE HEALTH PLAN ENROLLMENT(4)

(enrolled lives in millions)

PRIMARY CARE SUPPLY(5)

(number of physicians in thousands)

U.S. EMR ADOPTION – HOSPITAL(6)

(percent adoption by EMRAM stage)

U.S. EMR ADOPTION - AMBULATORY(6)

(percent adoption by EMRAM stage)

*represents Q1 2014 data (2013 year-end data unavailable),2016 not published to date

16.0%

17.0%

18.0%

19.0%

20.0%

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

'09 '11 '13 '15 '17P '19P '21P '23P '25P

National Health Expenditures

HC Expediture as % of GDP

12.6% 12.4% 13.0%

16.1%

19.3% 20.0% 20.2%

1990 2000 2010 2020P 2030P 2040P 2050P

3.2 4.5

6.1

8.0

10.0 11.4

13.5

15.5

17.4

19.7 20.2

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

683 723

794 821

57%

49%

37% 33%

'00 '05 '13 '16

Total Physicians (in 000s) % Independent

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Stage 0 Stage 1 Stage 2 Stage 3


'12 '13* '14 '15



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HEALTHCARE IT


PUBLIC COMPARABLES(7)

VALUATION AND OPERATING METRICS

As of March 31, 2017 ($ in millions, except per share amounts)

5

Stock Performance

Current % of LTM TEV / EBITDA

Mkt Cap TEV Price LTM High Revenue % Growth EBITDA Margin LTM 2017E


EMR

Cerner Corporation $18,639 $18,846 $56.53 83.7% $4,796 8.4% $1,455 30.3% 13.0x 11.0xathenahealth, Inc. 4,278 4,421 108.24 75.2% 1,083 17.1% 176 16.2% 25.1x 14.3x

Allscripts Healthcare Solutions, Inc. 2,096 3,759 11.61 76.5% 1,550 11.8% 240 15.5% 15.6x 11.3x

Quality Systems, Inc. 918 914 14.70 92.5% 505 2.5% 82 16.1% 11.2x 9.7x

Computer Programs and Systems, Inc. 374 524 27.60 51.0% 267 46.7% 36 13.4% 14.6x 10.6x

Median $2,096 $3,759 76.5% $1,083 11.8% $176 16.1% 14.6x 11.0x

RCM / Performance

Nuance Communications, Inc. $4,790 $6,634 $16.43 85.3% $1,950 0.2% $410 21.0% 16.2x 9.2x

Premier Inc. 4,193 7,039 29.85 85.0% 1,272 9.4% 371 29.2% 19.0x 13.3x

Adv isory Board Company 1,799 2,293 44.70 87.3% 803 0.1% 229 28.5% 10.0x 11.6x

Evolent Health Inc 1,046 1,163 19.90 74.1% 254 32.1% (58) NM NM NM

Median $2,996 $4,463 85.1% $1,038 4.8% $300 28.5% 16.2x 11.6x

Other Administrative

Omnicell, Inc. $1,450 $1,650 $39.25 96.9% $693 15.5% $73 10.5% 22.6x 16.9x

HealthStream, Inc. 716 612 22.52 78.1% 226 3.4% 29 12.7% 21.3x 17.2x

Vocera Communications, Inc. 641 567 23.06 93.5% 128 13.3% NA NA NA 73.3x

Tabula Rasa Healthcare, Inc. 229 227 13.43 79.7% 94 17.2% 9 10.0% 24.2x 14.9x

Median $679 $590 86.6% $177 14.4% $29 10.5% 22.6x 17.0x

Clinical / Administrative Median $1,450 $1,650 83.7% $693 11.8% $129 16.1% 16.2x 12.4x

Payer-Focused

Cotiv iti Holdings, Inc. $3,563 $4,224 $39.21 94.8% $625 6.1% $217 34.7% 19.5x 15.6x

Inovalon Holdings, Inc. 1,730 1,424 11.65 58.1% 428 (5.5%) 77 17.9% 18.6x 13.5x

HMS Holdings Corp. 1,488 1,510 17.81 74.2% 496 1.2% 111 22.3% 13.7x 11.3x

Pharma

Quintiles IMS Holdings, Inc. $18,277 $24,466 $77.47 93.3% $6,897 15.0% $1,136 16.5% 21.5x 11.8x

Veeva Systems Inc 6,749 6,231 49.80 98.1% 544 23.9% 122 22.4% 51.2x 31.0x

Medidata Solutions, Inc. 3,186 3,074 55.21 93.9% 463 10.1% 66 14.2% 46.8x 22.6x

PAREXEL International Corporation 3,150 3,675 61.82 85.5% 2,432 0.2% 349 14.4% 10.5x 10.0x

Pharma Median $4,968 $4,953 93.6% $1,488 12.6% $236 15.4% 34.2x 17.2x

Consumer Healthcare

WEX Inc. $4,388 $6,410 $102.66 83.5% $1,018 15.9% $344 33.8% 18.6x 13.0x

HealthEquity Inc 2,526 2,346 42.55 86.4% 178 26.5% 54 30.5% 43.1x 29.8x

WebMD Health Corp. 1,899 1,953 50.33 74.5% 705 5.1% 200 28.4% 9.7x 8.2x

Benefitfocus, Inc. 805 847 26.20 58.2% 233 9.8% (19) NM NM 57.3x

Castlight Health, Inc. 343 228 3.25 59.1% 102 16.7% (53) NM NM NM

Consumer Healthcare Median $1,899 $1,953 74.5% $233 15.9% $54 30.5% 18.6x 21.4x

Euro HCIT

CompuGroup Medical SE $2,344 $2,692 $44.05 94.2% $620 2.8% $132 21.3% 20.4x 16.4x

EMIS Group plc 691 691 10.92 70.1% NA NA NA NM NM 10.6x

NEXUS AG 339 320 21.53 96.1% 118 4.6% 22 18.4% 14.7x 12.2x

Euro HCIT Median $691 $691 94.2% $369 3.7% $77 19.9% 17.5x 12.2x

Consolidated Median $1,849 $2,123 84.4% $544 9.8% $116 18.4% 18.6x 14.7x

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HEALTHCARE IT


M&A TRANSACTION ACTIVITY(7)(8)


*HW&Co. confidential transaction

*Unpublished information

Announced

Date Target Acquirer Business Description

Enterpise

Value

Implied

EV/Revenue

Implied

EV/EBITDA

04/05/17 Adv anced Practice Strategies, Inc. Relias Learning Prov ides medical risk management education solutions. * * *

03/31/17 Strenuus LLC Zelis Healthcare, Parthenon Capital Prov ides health prov ider network analytics and managed healthcare data. * * *

03/29/17 Ev eryMov e, Inc. higi, BlueCross BlueShield Ventures Prov ides cloud-based consumer health engagement solutions. * * *

03/28/17 Bracket Global LLC Genstar Capital LLC Prov ides clinical research dev elopment solutions. * * *

03/16/17 Polyglot Systems, Inc. The Hearst Corp. Prov ider of medication assistance software. * * *

03/14/17 Verisys Corp. Spectrum Equity Prov ides screening, monitoring, v erification and credentialing solutions. * * *

03/13/17 CarePayment Technologies, Inc. Crestline Inv estors, Cedar Springs Capital Prov ides patient financial engagement solutions. * * *

03/13/17 Eliza Corp. HMS Holdings Corp. Prov ider of online automated healthcare communications serv ices. $170.0 * *

03/03/17 Essen BioScience, Inc. Sartorius AG Prov ider of instruments, software, reagents and consumables intended for the life science industry. $320.0 * *

02/17/17 CareEv olv e.com, Inc. ELLKAY LLC Prov ider of a web-based healthcare portal prov iding clinical information. * * *

02/14/17 HealthDatix iGambit Prov ider of medical decision and risk management software. * * *

01/31/17 C30 Medical Corp., Inc. InTouch Technologies, Inc. Prov ider of telemedicine management and physician cov erage serv ices. * * *

01/25/17 Cov erMyMeds LLC McKesson Corp. Prov ider of software that automates patient prescription submission. $1,400.0 29.5x *

01/23/17 Health123 Samepage Health Prov ider of a health intelligence platform supporting clinical workflows and engage patients. * * *

01/19/17 Seamless Medical Systems, Inc. GetWellNetwork, Inc. Prov ider of a mobile enterprise communications platform faciliating patient data exchange. * * *

01/19/17 Caret AssistRx, Inc. Prov ider of a web-based care management platform. * * *

01/04/17 Jiff, Inc. Castlight Health, Inc. Prov ider of a cloud-based application platform to manage patients. $153.5 * *

01/01/17 Pharmatek Systems McKesson Pharmacy Optimization Prov ider of hospital pharmacy cost containment software and serv ices. * * *

11/30/16 Array Health Solutions, Inc. Vimo, Inc. Prov ider of priv ate health insurance exchange technology solutions. * * *

11/07/16 Rev Spring, Inc. GTCR LLC Prov ider of accounts receiv able management and rev enue cycle management serv ices. * * *

11/01/16 Aldera Holdings, Inc. Ev olent Health, Inc. Prov ider of core administration solutions for healthcare payers and administrators. $34.0 * *

10/27/16 HealthMEDX LLC Netsmart Technologies Prov ider of home care, long-term care and rehab software solutions. * * *

6

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HEALTHCARE IT


M&A TRANSACTION ACTIVITY(7)(8)


*HW&Co. confidential transaction

*Unpublished information

Announced

Date Target Acquirer Business Description

Enterpise

Value

Implied

EV/Revenue

Implied

EV/EBITDA

10/09/16 Intelligent Medical Objects, Inc. Warburg Pincus Prov ider of medical terminology content and serv ices supporting clinical workflow. * * *

10/06/16 Conv ey Health Solutions, Inc. New Mountain Capital Prov ider of health insurance support serv ices. * * *

10/04/16 Emmi Solutions LLC Wolters Kluwer NV Prov ider of patient engagement and empowerment technology serv ices. $170.0 5.9x *

09/22/16 Creehan & Co. Corp. Inov alon Holdings, Inc. Prov ider of software application platforms and implementation of serv ices. $130.0 4.8x *

09/12/16 Anthelio Healthcare Solutions, Inc. ATOS SE Prov ider 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 QHR Corp. Loblaw Cos. Ltd. Prov ider of medical records software. $116.4 5.1x *

08/22/16 BioClinica, Inc. Cinv en 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 AB Prov ider of patient-experience measurement and performance analytics solutions. $2,284.5 6.6x 21.4x

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

07/20/16 Wellcentiv e, Inc. Royal Philips NV Prov ider of population health management and data analytics solutions. * * *

07/13/16 Impriv ata, Inc. Thoma Brav o LLC Prov ider of HCIT authentication management security solutions. $442.5 3.5x NA

07/13/16 Valence Health, Inc. Ev olent Health, Inc. Prov ider of clinical integration and data management software. $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 Nav icure, Inc. Bain Capital LP Prov ider of rev enue cycle management solutions to physicians, billing companies, and hospitals. * * *

06/13/16 MedHOK, Inc. The Hearst Corporation Prov ider of quality and compliance solutions for health plans and accountable care organizations. * * *

06/13/16 Cardon Healthcare Holdings LLC MEDNAX, Inc. Prov ider of third party eligibility and rev enue cycle management serv ices for hospitals. * * *

05/04/16 DocuTAP, Inc. Warburg Pincus LLC Prov ider of EMR, practice management, and rev enue 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. $12,904.7 4.2x 17.1x

04/26/16 Withings SA Nokia Corporation Prov ider of digital health and wellness smart dev ices and applications. $191.6 * *

04/25/16 Verisk Health, Inc. Veritas Capital Prov ider of risk assessment and decision analytics serv ices to the global healthcare industry. $820.0 * *

04/14/16 Curaspan Health Group, Inc. Cardinal Health, Inc. Prov ider of discharge and care transition solutions for coordinated care. * * *

7

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HEALTHCARE IT


PRIVATE PLACEMENT ACTIVITY(7)(8)

Last 12 Months as of March 31, 2017 ($ in millions)

Announced

Date Target Lead Investor(s) Business Description

Round /

Stage

Money

Raised

Raised to

Date

03/29/17 higi BlueCross BlueShield Venture Partners Prov ider health tracking solutions. B NA $40.0

03/29/17 SHYFT Analytics Optum Ventures Prov ider of data, analytic and mobile solutions for the life sciences industry. B $7.5 $39.0

03/20/17 Aetion Flare Capital, Lakestar Prov ider of medical ev idence software. A $11.2 $11.2

03/16/17 Liv ongo General Catalyst Partners, Kinnev ik Prov ider of a web and mobile based chronic disease management platform. D $52.5 $132.0

03/14/17 MindCare Solutions Epiphany Health Ventures Prov ider of remote healthcare and behav ioral health serv ices for mentally challenged patients. A $23.0 $23.0

03/08/17 Alignment Healthcare LLC Warburg Pincus Prov ider of clinical care coordination and risk management solutions.PE Growth /

Expansion$115.0 $115.0

03/01/17 Medisafe Octopus Ventures Prov ider of a personalized medication management platform. B $14.5 $21.5

02/17/17 Kyruus Mercy Health Foundation Prov ider of an information exchange platform matching patients with the best suited doctors. C $10.0 $59.8

02/14/17 Sense.ly Mayo Clinic, Chengwei Capital Prov ider of a patient engagement platform. B $8.0 $11.5

02/03/17 Comprehend Systems Eminence Capital Prov ider of a cloud-based suite supporting clinical assessment and CRO ov ersight and collaboration. C $14.8 $45.6

02/01/17 PointClickCare Corp. Dragoneer Inv estment Group, JMI Equity Prov ider of SaaS EHR software for long-term post-acute care prov iders.PE Growth /

Expansion$85.0 $85.0

02/01/17 HealthRev eal GE Ventures Prov ider of a cloud-based, chronic disease analytics platform. A $10.8 $10.8

01/25/17 Kensci Ignition Venture Partners Prov ider of population health risk management solutions. A $8.5 $8.5

01/24/17 Redox RRE Ventures Prov ider of a platform helping EHRs and health systems manage cloud connections. B $9.0 $9.0

01/17/17 Practo Tencent Holdings Prov ider of an online serv ice for scheduling appointments with doctors. D $55.0 $179.6

01/03/17 Solera (Health Network) Sandbox Industries, SJF Ventures Prov ider of chronic disease prev ention solutions. A $9.0 $12.0

12/15/16 Cota, Inc. Boston Millennia Partners Prov ider of healthcare data collection and data analysis serv ices. C $18.0 $21.7

12/12/16 Healthcare Interactiv e, Inc. Grotech Ventures, HMC-Virginia, Inc. Prov ider of administration tools and technology serv ices for the healthcare industry. A $8.0 $14.1

12/08/16 Vida Health, Inc. Canv as Ventures Prov ider of a mobile health coaching application. B $18.0 $23.0

12/08/16 Augmedix, Inc. McKesson Ventures, OrbiMed Prov ider of a smartglass-based physician productiv ity platform. B $23.0 $63.3

12/06/16 PatientPing, Inc. Andreessen Horowitz Prov ider of a real time medical notification platform. B $31.6 $41.2

12/01/16 MedNet Solutions, Inc. Arrowroot Capital Prov ider of web-based electronic data capture technology. B $16.5 $20.5

11/23/16 GNS Healthcare, Inc. Horizon Healthcare Serv ices, Celgene Prov ider of big data analytic serv ices for the healthcare industry. C $4.0 $29.0

8

PAGE |

HEALTHCARE IT




Announced


Round /

Stage

Money

Raised

Raised to

Date

11/15/16 CareCloud Corp. Blue Cloud Ventures Prov ider of cloud-based healthcare management serv ices. C $15.8 $120.1

10/31/16 Av izia, Inc. Blu Venture Inv estors, Blue Heron Capital Prov ider of a telehealth and remote conferencing software platform. A $17.1 $24.5

10/21/16 Carev iv e Systems, Inc. Undisclosed Prov ider of a clinical practice and patient engagement software. B $7.2 $702.0

10/13/16 Nordic Consulting Partners Silv ersmith Capital Partners Prov ider of healthcare information technology consulting serv ices.PE Growth /

ExpansionNA $38.3

10/13/16 Contessa Health, Inc. Noro-Moseley Partners Prov ider of home-hospitalization programs to manage episodic risk initiativ es. B $7.0 $10.5

10/12/16 Axial Healthcare, Inc. Oak HC/FT Prov ider of pain-management effectiv eness assessment solutions for healthcare prov iders. B $16.5 $26.3

10/11/16 Ev idation Health, Inc. B Capital Group Prov ider of a data analysis platform for the healthcare sector. B $15.0 $21.0

09/27/16 Azalea Health Innov ations, Inc. Undisclosed Prov ider of an electronic health records system for medical practices. C $10.8 $22.8

03/06/06 InstaMed Holdings, Inc. Carrick Capital Partners LLC Prov ider of a payments network for the healthcare industry. B $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 Prov ider of online weight loss and related disease prev ention programs. C $28.0 $32.1

08/24/16 ClearCare, Inc. Battery Ventures Prov ider of Web and mobile platform for administration of home-care agencies. D $60.0 $75.6

08/11/16 Accolade, Inc. Andreessen Horowitz Prov ider of consumer healthcare information serv ices. E $70.0 $142.2

08/09/16 Wound Technology Network, Inc. Aldrich Capital Partners LLC Prov ider of a telehealth based platform that offers wound care serv ices. A $40.0 $40.0

08/08/16 Aligned Telehealth, Inc. SV Life Sciences Adv isers LLP Prov ider of telemedicine and healthcare management serv ices. A $12.0 $12.0

08/04/16 Elation EMR, Inc. Draper Fisher Jurv etson Management Prov ider of web-based electronic medical record systems. B $15.0 $17.0

08/01/16 StatRad LLC Undisclosed Prov ider of teleradiology serv ices for radiology groups and hospitals. NA $29.2 $29.2

07/21/16 AristaMD, Inc.Av alon Ventures; Correlation

ManagementProv ider of business management consulting and adv isory serv ices for the health care industry. A $11.0 $13.1

07/15/16 Medsphere Systems Corp. Undisclosed Prov ider of an open-source electronic health-record system.Late-Stage

VC$15.3 $53.5

07/13/16 Caremerge LLC GE Ventures Prov 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, Mav erick

VenturesProv ider of software and mobile applications for patient record monitoring. A $15.0 $17.1

10/31/16 Av izia, Inc. Blu Venture Inv estors, Blue Heron Capital Prov ider of a telehealth and remote conferencing software platform. A $17.1 $24.5

9

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HEALTHCARE IT




Announced


Round /

Stage

Money

Raised

Raised to

Date

06/14/16 Procured, Inc. HCA Holdings, Inc.; Heritage Group LLC Prov ider of data-driv en technologies that improv e patient care. B $10.0 $15.1

06/06/16 Valify LLC Frist 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

CapitalProv ider of predictiv e analytics around medical science and patient data. B $10.0 $20.0

05/12/16 Umbie Health Corp. Undisclosed Prov ider of cloud-based software for dental practice management. A $2.6 $2.8

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

Limousin Poitou

Prov ider 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, CVHProv ider of telehealth solutions connecting mental health prov iders to their clients online. A $3.5 $4.1

04/15/16 Proteus Digital Health, Inc. Undisclosed Prov ider of wearable digital wellness and medication adherence solutions.Late-Stage

VC$50.0 $419.7

04/14/16 Quartet Health, Inc. GV (formerly Google Ventures) Prov ider of cloud-based behav ioral healthcare collaboration plaform. B $40.0 $47.0

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 Capital Prov ider of staff scheduling and labor management software solutions to the post-acute sector. D $18.0 $31.0

04/12/16 Liv ongo Health, Inc.Merck, Cowen Pv t. Inv ., Sapphire

VenturesProv ider of consumer digital health and diabetes coaching tools. C $44.5 $84.5

10

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HEALTHCARE IT


IPO ACTIVITY(7)(8)


Enterprise Value

Offer Date Issuer Description Raised Offer Date Today % Change

09/28/16 Tabula Rasa Healthcare, Inc.Prov ider 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. Prov ider of analytics-driv en healthcare payment accuracy solutions. $245.8 $2,414.3 $3,489.0 44.5%

11

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HEALTHCARE IT


REPRESENTATIVE HW&CO. HEALTHCARE TECHNOLOGY TRANSACTIONS

has been acquired by has acquired has been acquired by has been acquired by has been acquired by

has been acquired by

a portfolio company of









a division of



a division of





has been acquired by has been acquired by

a subsidiary of has been acquired by

a portfolio company of has been acquired by

a portfolio company of a portfolio company of


has been acquired byhas been acquired by

has received a minority investment from

12

has been recapitalized by


has received a majority

investment from

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HEALTHCARE IT


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1. Centers for Medicare & Medicaid Services

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3. U.S. Census Bureau

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8. PitchBook

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Harris Williams | Preeminent Middle Market …...Harris Williams & Co. is pleased to present our review of Q1’17 Healthcare IT activity. This report provides commentary and This