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PDR Network acquired by Genstar CapitalPDR Network, the Montvale, NJ operator of a network thatengages physicians, pharmacists, and patients withtargeted content, and backed by Lee Equity Partners, wasacquired by Genstar Capital, the San Francisco, CA privateequity firm, for an undisclosed sum.PDR’s Physicians’ Desk Reference is still a bible for manydoctors in the U.S. PDR has come a long way from the daysof providing the reference book in print form. Theinformation is now fully digital and integrated with manyEMRs. The company purchased LDM Group, a behaviorbased prescription management company, late last yearand doubled its size. Great exit for the main investor, LeeEquity.DNA Diagnostics Center acquired by GHO CapitalPartners for 104MDNA Diagnostics Center, the Fairfield, OH provider of DNAtesting services, was acquired by GHO Capital Partners, theLondon, UK based private equity firm, for 140 million.DNA/genetic testing is just getting started. On the heels ofthe large capital raise by 23andMe which was for 115million, DNA Diagnostics’ recap is of no surprise. Thecompany is probably the oldest player in the field of DNAtesting with its initial focus being on paternity testing.Corporate Translations acquired by RWS for 70MCorporate Translations, the East Hartford, CT provider oflife sciences translation and linguistic validation services,was acquired by RWS Holdings (AIM:RWS), for 70 million,implying a valuation of 3.0x LTM revenue and 14.6x LTMEBITDA.RWS, based in the UK, is one of the largest technicaltranslation companies with 600 million in enterprise valueand sales of 130 million. The company’s chief focus is onpatent translation. Corporate Translations, in turn, focuseson clinical trials in pharma and biotech. This is a matchmade in heaven!ClientTell acquired by West Corp for 49MClientTell, the Valdosta, GA provider of automated patientappointment reminders, was acquired by West Corporation(NASDAQ:WSTC) for 48.5 million.West Corp started dabbling in healthcare when it firstbought Health Advocate, the concierge services company,in 2014 for 265 million. ClientTell is, after all, acommunication platform which is a familiar territory for WestCorporation, a leading communication service provider withover 5.3 billion in enterprise value. It looks to us that Westis putting the pieces together to play a more serious role incare coordination.PDI – Commercial Services Business to be acquiredby Publicis for 33MPDI’s Commercial Services business (CSO), theParsippany, NJ subsidiary of PDI (NASDAQ:PDII), agreedto be acquired by Publicis Healthcare CommunicationsGroup, the subsidiary of Publicis Groupe (ENXTPA:PUB),for 32.6 million.PDI has wanted to focus on its molecular diagnosticbusiness for some time, so an orphan asset is being boughtby a company that can really appreciate its value. PDICommercial Services business is a contract salesorganization which, when combined with Publicis’healthcare operation, will have 4,000 healthcareprofessionals who help pharma and biotech companiescommercialize their products. PDI haswon someimpressive contracts this year totaling 45 million in value.AxelaCare acquired by OptumRxAxelaCare Health Solutions, the Lenexa, KS provider ofhome infusion solutions, and backed by Harvest Partners,was acquired by OptumRx, the pharmacy services businessof Optum, for an undisclosed sum.This is a classic case of using your network to push throughmore products. Axela has operations in 44 states and anetwork of 34 pharmacies. The company has made sixacquisitions since December 2010.OptumRx has anetwork of 67,000 community & home delivery pharmacies.Clarity Health acquired by SCI SolutionsClarity Health, the Seattle, WA SaaS provider of insuranceauthorization and referral management solutions, andbacked by Columbia Pacific Advisors, was acquired by SCISolutions, the Campbell, CA provider of referralmanagement and patient scheduling solutions, for anundisclosed sum.We have a lot of respect for SCI. This combination makesperfect sense to us. The combined company will serve morethan 10,000 physician practices and 700 hospitals. Thisfurther strengthens SCI’s product portfolio and increasesthe importance of the company in the care coordinationspace. SCI raised additional funding to make thisacquisition. Clarity had raised about 11 million in fundingprior to the acquisition.Essia Health acquired by ScribeAmericaEssia Health, the Woodland Hills, CA provider of scribemanagement solutions, and backed by Camden Partners,was acquired by ScribeAmerica, the Aventura, FL providerof medical scribe education, training, and managementsolutions, for an undisclosed sum.This is ScribeAmerica’s third acquisition in 2015. Essiaprovides a more meaningful geographic presence forScribeAmerica on the west coast.Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 11/30/15. These companies are asample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean andmedian multiples using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.04

G2N acquired by iMedXAOD Software to be acquired by MatrixCareG2N, the St. Louis, MO provider of coding and RCMservices to hospitals, was acquired by iMedX, the Atlanta,GA provider of medical documentation management andinformation solutions, for an undisclosed sum.AOD Software, the Coral Springs, FL provider of softwaresolutions to long term care facilities, and backed by PrimusCapital and others, agreed to be acquired by MDI Achieve(dba MatrixCare), the Bloomington, MO provider of softwaresolutions and services to the long-term care industry andsenior living communities, and subsidiary of Logicbec, foran undisclosed sum.iMedX is one of the most aggressive acquirers in the codingand documentation sector. G2N has two differentbusinesses. In addition to medical coding, the company hasa results-based consulting services focused on the revenuecycle management and reimbursement angleiVantage acquired by The Chartis GroupiVantage Health Analytics, the Portland, ME provider ofanalytics and business intelligence solutions, and backed byGreat Point Partners, was acquired by The Chartis Group,the Chicago, IL provider of management consultingservices, for an undisclosed sum.Chartis Group is starting to win a lot of respect in theindustry. The company is essentially a high-end consultinggroup with specific core competencies in the accountablecare and clinical transformation space. iVantage has carveda good niche for itself in the area of performance analyticsand decision support. We like this deal.Xtend Healthcare acquired by NavientXtend Healthcare, the Hendersonville, TN provider ofrevenue cycle management services, and backed byBrentwood Capital Partners and WestView Capital Partners,was acquired by Navient (NASDAQ:NAVI), for anundisclosed sum.We have a lot of respect for WestView. The firm has been aconsistent outperformer in healthcare. But this sale breaksrecords. WestView invested in Xtend only in April 2014. ForNavient, whose stock performance has been dismal, thiscan be a strategic acquisition bringing them into one of themore dynamic sectors of the economy. Xtend’s revenue hasgrown substantially from 17 million in 2010 to more than 70 million in 2015.The Camden Group acquired by GE HealthcareThe Camden Group, the El Segundo, CA provider ofhealthcare advisory solutions, was acquired by GEHealthcare Partners, the subsidiary of General Electric(NYSE: GE), for an undisclosed sum.The Camden Group is one of the most establishedhealthcare advisory firms in the U.S. with over 2,000 clients.The company’s services span financial advisory (M&Atransactions) to strategy advice for hospital turn-aroundsand operational improvements. We will wait and see howGE will incorporate Camden’s various lines of business.AOD’s suite of solutions serves 800 Continuing CareRetirement Communities (CCRCs) in addition to 1,400home health and home care locations. MatrixCare’s productis used by 8,500 facilities. AOD, reportedly with revenues of 33M in 2014, is a great addition to MatrixCare which is amore significant player. The combination creates anotherbig entity in the long term care facility sector; one of themost sought after segments for private equity investors.1DocWay acquired by Genoa1DocWay, the New York, NY provider of telepsychiatrysolutions, and backed by Rock Health, Asset ManagementVentures, Great Oaks Venture Capital and others, wasacquired by Genoa, a QoL Healthcare Company, thePittsburg, PA provider of specialty behavioral health andlong-term care pharmacy solutions, for an undisclosed sum.1DocWay is the perfect acquisition candidate for Genoa.This is not dissimilar to the brick and mortar stores gettinginto online commerce. We are a big believer in anythingtelemedicine including telepsychiatry.ikaSystems to be acquired by BCBS of MichiganikaSystems, the Southborough, MA provider of businessautomation and process solutions for health insurers, andbacked by Essex Woodlands and Providence Equity, wasacquired by Blue Cross Blue Shield of Michigan, for anundisclosed sum.When Providence Equity and Essex Woodlands invested 120 million in 2009, many people viewed ikaSystems asthe next generation Trizetto. To us, this appears to be adeal between a customer and its vendor. We think that thenew owners would be of great help to crystalize thestrengths of the company, without the pressures associatedwith being owned by private equity firms.Outcome Resources acquired by Hospice PharmacySolutionsOutcome Resources, the Rocklin, CA provider of hospicepharmacy benefits management (PBM) services, andbacked by New Capital Partners, was acquired by HospicePharmacy Solutions, the Colleyville, TX provider of PBMservices, for an undisclosed sum.Outcome Resources has been around for 15 years. Thecombination is a classic roll up.Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 11/30/15. These companies are asample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean andmedian multiples using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.05

Pathology, Inc. assets to be acquired by LabCorpOne Medical Group raises 65M in fundingThe assets of Pathology, Inc. the Torrance, CA provider ofwomen's health laboratory services, and backed by ABSCapital and others, agreed to be acquired by LabCorp(NYSE:LH), for an undisclosed sum.One Medical Group, the New York, NY owner and operatorof primary care practices, raised 65 million in funding ledby J.P. Morgan Asset Management and includedparticipation from other new and returning investors.Back in February 2015 when LabCorp purchased Covance,a large drug development firm, for 6.1 billion, many toutedthe acquisition as transformational. The acquisition ofPathology Inc. is a very simple aggregation of market sharefor LabCorp. Pathology Inc. is one of the best brands in thewomen health laboratory space. LabCorp’s stock has beenfairly steady this year, performing slightly above the NYSEindex.Healthcare services is coming unbundled everywhere.Standalone clinics are competing with larger hospitals. Newentrants into the insurance business are slowly chippingaway at the market share of larger health insurers. Nowthere are concierge services coming to market that areproviding a unique set of solutions all under one roof. Theseservices include same day appointments, e visits, weekendhours, etc. The company charges 149 annually asmembership fees. This is similar to another company,MDVIP which charges an annual fee of 1,800 allowingtheir patients to have access to top doctors. One Medicaladded 80,000 members last year and has 150 businessclients. The company has a strong emphasis on prevention.FlexLife Health acquired by WFW CardiacFlexLife Health, the Cleveland, OH provider of remotepatient monitoring services, was acquired by WFW Cardiac,the Rosemont, IL provided of mobile cardiac and homesleep testing technologies, for an undisclosed sum.WFW Cardiac is owned by the German manufacturer IFE). This is LifeWatch’s first acquisition in 10 yearsand further consolidates its U.S. presence. The companyhas enjoyed a nice appreciation in its stock price sinceearlier this year.FUNDRAISINGAccretive Health raises 200M in fundingAccretive Health (OTCPK: ACHI) raised 200 million from ainvestment vehicle owned by Ascension and TowerBrook.This investment vehicle will purchase convertible preferredstock and receive warrants. In addition, Accretiveannounced a revised and expanded 10-year strategicpartnership with Ascension.This is the best news for the company in years. As most ofour readers know, the company has struggled with muddledfinancials and nose diving stock price. Ascension, thelargest customer of Accretive, offered to buy the companylast summer but the offer was rejected by Accretive’s board.In a somewhat complicated deal, Ascension renewed itscontract with the company and with TowerBrook, one of thesavviest PE firms, simultaneously invested 200 million ofconvertible debt, which on a fully diluted basis, is close to44% of the shares outstanding. We expect that we will seea new revitalized RCM company in the near future. Thecompany plans to list again either on NASDAQ or NYSEonce the deals closes. Accretive was delisted in March 214.We all remember the fact that Accretive was one of theearly pioneers in the RCM sector.RiverMend Health raises 60M in fundingRiverMend Health, the Atlanta, GA operator of substanceaddiction and mental health centers, raised 60 million infunding led by Norwest Venture Partners.Mental illness and addiction are some of the most silent butsevere health issues in the U.S. We already see anincreased level of investment activity in the behavioralhealth facilities space. To get to the root of mental illnessand addiction is a much bigger value proposition. We will beseeing more and more money going into this sector.Evariant raises 44M in fundingEvariant, the Farmington, CT provider of healthcareplatform that improves patient and physician engagement,raised 44.2 million in funding from Goldman Sachs, HealthEnterprise Partners, Lightspeed Venture Partners and otherinvestors.There are a lot of companies that are trying to help hospitalsmarket their services. In this environment, where hospitalsare vying for new patients (particularly the ones withcommercial health insurance), effective CRM technologiesare a must. We think this race is predominately betweenEvariant and Influence Health - formerly MEDSEEK.PresenceLearning raises 25M in Series C fundingPresenceLearning, the San Francisco, CA provider of onlinespeech therapy, occupational therapy and behavioral healthsolutions, raised 25 million in Series C funding led byCatalyst Investors and included participation from existinginvestors.Another e-visit play for tapping speech therapists for K-12students. Keep them coming. We love the economics of evisits. Prior to this raise, PresenceLearning had raised over 12 million of capital.Source: Marlin & Associates, Capital IQ and Public sources. All market and operating data is sourced as of 11/30/15. These companies are asample of firms in the sector as M&A defines it, and do not comprise a comprehensive list of all firms in the sector. M&A calculates mean andmedian multiples using data from a set of firms that it believes to be reasonable and which may not be identical to the set reflected above.06

Vitals raises 42M in Series D fundingWeave raises 16M in Series B fundingMDX Medical (dba Vitals), the Lyndhurst, NJ provider ofhealthcare price transparency and consumer engagementsolutions, raised 41.8 million from the Merchant BankingDivision of Goldman Sachs and existing investors.Weave, the Lehi, UT provider of communication solutions,that sync with CRM and EHR software, raised 15.5 millionin Series B funding led by Crosslink Capital withparticipation from Pelion Ventures and Peak Capital.We continue to be impressed by the amount of capitalGoldman Sachs is deploying in the HIT market. Manycompanies like Vitals have started a simple review site fordoctors, and the good ones have morphed into a full servicevendor for payers, consumers and employers. In addition tothe reviews, the company offers price transparency,appointments, consumer engagement (read: incentivizingemployees to use more cost efficient options, etc.) Thecompany has a new CEO, Heyward Donigan and thisfunding is a huge vote of endorsement for her and theVitals’ business model.This is a very interesting move by a company that onsurface is in the ordinary business of long distance andlocal calling services for medical SMBs. Weave, which wasfounded in 2008, has 2,000 dental and orthodonticscustomers across the US and Canada. The company will beusing the funds to move to other practices and plans tocombine, phone, email, text, CRM and EHR solutions all onone platform.ElMindA raises 28M in Series C fundingElMindA, the Herzliya, Israel provider of neurosciencebased technology for analyzing brain network functionality,raised 28 million in Series C funding from Shanda Group,The Kraft Group, WR Hambrecht & Co Palisade CapitalManagement, OurCrowd and others.Brain mapping is one of the most exciting frontiers ofscience. The applications for discovering brain networkfunctionality range from AI, to virtual reality games, and ofcourse, discovery of causes of neurological diseases. TheCompany’s technology plays well into the recent WhiteHouse Brain Initiative. The company’s BNA productreceived FDA approval in 2014 and is now available at 15locations in the U.S.HealthiestYou raises 30M in fundingHealthiestYou, the Scottsdale, AZ provider of telehealthfocused health and wellness solutions, raised 30 million infunding from Frontier Capital.The company has ambitious goals. It aims to combine telemedicine with wellness programs. The company servesover 4,000 employers. In September 2014, the companyreceived an investment from UnitedHealth Group Ventures.We will be watching this company closely. We like thespace.symplr raises fundingsymplr, the Houston, TX provider of healthcare complianceand credentialing solutions, completed a recapitalization ledby Pamlico Capital and included participation from existinginvestors including The CapStreet Group.symplr has a comprehensive suite of solutions spanningprovider, staff and vendor credentialing. We are a bitsurprised that a PE firm won this auction. The company’sline of business would have been ideal for many strategicbuyers.ClearCare raises fundingClearCare, the San Francisco, CA provider of softwaresolutions for private duty home care agencies raised anundisclosed round of strategic funding from McKessonVentures.Prior to the investment by McKesson Ventures, ClearCarehad raised 15 million from investors such as Bessemer,Qualcomm and Cambia. We all know that any software andservices aiming for the senior population is a good businessto be in. What sets ClearCare apart is its matching systemwhich essentially matches the client with the nearbycaregivers that are qualified. The company also has a billingand payroll platform. Both ClearCare and McKesson arebased in San Francisco.MD Revolution raises 23M in fundingMD Revolut

on the physician side. HealthFusion, founded primarily by doctors, has 6,000 ambulatory subscribers nationwide in more than 30 specialties. Its platform, known as MediTouch, is one of the most advanced cloud-based solutions for the smaller practices. We expect that QSI will integrate that technology into its own installed base.