M&A Report

Look for Health Care Mergers and Acquisitions to Resurge in 2021

Last year at this time, the expectation was that 2020 would be an unusually active year for health care mergers and acquisitions. But the pandemic forced deal makers to shelve their plans and await further developments. As the year comes to a close and the COVID-19 crisis comes to what may well prove to be its climax, talk of return to more active M&A deal making has returned.

Ripe Conditions for M&A Deals

In some ways, COVID-19 changed everything, and in other ways, it changed nothing, including the long-term financial factors that made the conditions ripe for M&A deals. Coming up with the capital to make a strategic acquisition will be less challenging in 2021. Liquidity is strong, thanks in part to CARES Act funding that enabled would-be acquirers to build up cash reserves. Low interest rates and the recovery of stock prices will also provide impetus for M&A deal making.

And even as equity value and liquidity burns a hole in the pockets of would-be acquirers, stress, uncertainty of survival and downward pressure on earnings in the health care markets, particularly to small and mid-sized labs and other providers, will also likely ensure a robust supply of acquisition targets. Genomics firms, hospital labs and freestanding test labs are among the candidates for acquisition. Outside the labs space, home healthcare and digital health technology companies that offer remote care management and better clinical outcomes at lower costs, will also generate strong interest.


Acquiring Company Target(s) Deal Summary
PerkinElmer Horizon Discovery Group
  • Price: $383 million cash
  • Status: Expected to close Q1 2021
  • Acquisition of cell engineering firm enables PerkinElmer to add gene editing and gene modulation tools to its portfolio of automated life sciences discovery and applied genomics products
Impact Lab Group HeartGenetic
  • Price: Undisclosed
  • Status: No closing date announced
  • Acquisition of developer of bioinformatic software and personalized genetic tests which will continue to operate under its name in Portugal, Brazil, Netherlands, Spain and Italy
Calibre Scientific Dianova
  • Price: Undisclosed
  • Status: Closed
  • Calibre to integrate antibodies, immunoassays and molecular biology products into its Biozol Diagnostica to create distribution network for Germany, Austria and Switzerland
Intermountain Health Sanford Health
  • Price: Undisclosed
  • Status: Signed letter of intent to merge in 2021
  • Merged entity to operate 70 hospitals and 435 clinics and provide senior care services in 366 locations in 24 states, with HQ in Sioux Falls, South Dakota
Prenetics Oxsed
  • Price: $13.1 million in cash
  • Status: Closed
  • Acquisition of University of Oxford spinout created to develop and launch Oxsed RaViD Direct rapid SARS-CoV-2 test
Eurofins VRL Hawaii Cellular Therapy and Transplant Laboratory (HCTTL)
  • Price: Undisclosed
  • Status: Closed Church’s lab at Harvard
  • Acquisition deal expands Eurofins’ US presence and strengthens Eurofins Transplant Diagnostics

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