Nine digital health mergers and acquisitions from the third quarter of 2017

By Jonah Comstock
10:09 am

With just nine acquisitions, the third quarter of 2017 didn't set a record for number of digital health acquisitions — Q1 and Q2 of this year came in at 12 apiece. But it did feature some very high-profile deals, including the acquisition of digital health pioneer WebMD, a rare acquisition from Alphabet, and big deals in spaces from diabetes management to caregiving to health insurance.

Of course, acquisition is only one kind of exit and this quarter also saw some companies come to a less rosy end. In this quarter, we saw the final nail in the coffin for Jawbone, as the tracker company started liquidation proceedings in July. We also saw the end of Pact, an early fitness app startup that sought to encourage workouts with financial incentives.

Read on below for a roundup of the nine digital health acquisitions from Q3 2017, presented in order of deal size for the two deals with known price tags, and in chronological order for the seven acquisitions with undisclosed terms.

Internet Brands acquires WebMD ​— Internet Brands, a portfolio company of KKR, announced its intention to acquire WebMD Health Corp., operators of the popular WebMD website, for about $2.8 billion. The transaction is expected to close during the fourth quarter. Internet Brands' health vertical serves millions of consumers and more than 50,000 healthcare practices utilizing a multi-brand, multi-product approach. The company is the leading SaaS web hosting player in the health space, serving a wide variety of practice areas, including dental, chiropractic, veterinary, vision care, and mental and physical therapy. More.

NextGen acquires Eagle Dream Health ​— NextGen Healthcare Information Systems, a subsidiary of Quality Systems, agreed to pay $26 million to acquire EagleDream Health, a cloud-based analytics outfit that optimizes practice performance using clinical, financial and administrative data. NextGen is a healthcare information technology and services company that delivers foundational capabilities to organizations that want to promote healthy communities. This marks the second major asset acquired by NextGen this year, following its purchase of Entrada. More.

Philips acquires Health & Parenting — In a move to solidify its’ presence in consumer digital health, Royal Philips acquired London-based Health & Parenting Ltd, a developer of healthcare and family-focused mobile apps. The terms of the deal were not disclosed. The acquisition will serve to bolster Philips’ uGrow digital parenting platform, which features a pregnancy and infant-tracking app that connects with a range of smart baby products including the Philips Avent Smart Baby monitor. More.

Veritas Genetics acquires Curoverse — Veritas Genetics, a leader in whole-genome sequencing, has acquired computing and bio-informatics firm Curoverse for an undisclosed amount. Curoverse provides infrastructure for life sciences companies to manage large datasets, including an open source platform called Arvados. The acquisition isn't totally unexpected, since the two companies have a strong existing relationship. Not only were both companies cofounded by Harvard professor Dr. George Church, but Veritas and Curoverse have worked together on Harvard's Personal Genome Project. More.

Alphabet acquires Senosis — Alphabet (the Google parent company formerly known as Google) acquired a small, Seattle-based startup called Senosis Health. According to Senosis' now-inactive website, the company has created three health apps which use the smartphone's built-in sensors to monitor different health biomarkers. One app, BiliCam, uses the smartphone's camera to screen for newborn jaundice. Another, SpiroSmart, turns the smartphone's microphone into a spirometer. The third and final offering, HemaApp, uses the smartphone camera to measure hemoglobin in the bloodstream. The terms of the acquisition were not disclosed. More.

GetInsured acquires ACAExpress — GetInsured, a Mountain View, California-based company that makes web tools for easy insurance enrollment, has acquired ACAExpress and its sister brand Benefit Geek, which work with insurance brokers to facilitate enrollments under the Affordable Care Act. The terms of the deal were not disclosed. More.

Tabula Rasa acquires SinfoníaRx — Tabula Rasa Healthcare, a healthcare technology company focused on medication safety, completed its acquisition of SinfoníaRx, a provider of Medication Therapy Management (MTM) technology and services for Medicare, Medicaid, and Commercial Health plans. The terms of the acquisition were not disclosed. The acquisition allows Tabula Rasa to expand its MTM programs to strategic markets — namely Part D providers, commercial payers, pharmacy benefit managers and self-funded employers. More.

Livongo acquires Diabeto — Mountain View, California-based Livongo Health, the chronic condition management technology company founded by former Allscripts CEO Glen Tullman, has acquired Diabeto, a diabetes management company based in Piscataway, New Jersey in the US and Maharashtra in India. The terms of the acquisition were not disclosed. While the impetus for the acquisition was making Diabeto's connectivity assets available to Livongo users, Livongo isn't dismantling Diabeto's existing business, which will continue to work with consumers and enterprise partners. More.

Generali Global Assistance acquires CareLinx — Generali Global Assistance, the US division of Europ Assistance Group, has acquired CareLinx, a seven-year-old digital health startup that offers a matching service for families and caregivers. The terms of the deal were undisclosed. Generali has several assistance-related businesses in the US and overseas, including a travel assistance and roadside assistance business. CareLinx will be incorporated as its own elderly assistance business and will retain its full team, office, and brand. More.


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