Health IT, HIM Booming with Merger and Venture Capital Activities
Venture capital funding for health IT and health information management (HIM) companies doubled in 2012 compared to 2011, boosted by robust merger and acquisition activity, a new report finds.
Venture capital funding totaled nearly $1.2 billion in 163 deals in 2012 compared to $480 million in 49 deals in 2011 and $211 million in 22 deals in 2010, according to a Mercom Capital Group report.
“While the focus of funding has been in the HIM category, which covers technologies on the healthcare practice side, there is significant investment and funding going into companies that engage the consumers—like mobile health, telehealth, personal health and social health,” said Mercom managing partner Raj Prabhu in a statement released with the report. He added that the number of health IT deals tripled in 2012, compared to 2011.
Merger and acquisition activity in the healthcare IT sector was considered healthy in 2012, compared to previous years, according to Mercom. The report noted that the sector saw 163 transactions totaling approximately $7 billion in 2012.
Click here to download the Mercom report.