All of the 5 digital health IPOs last year went public for valuations above $400M.
While deal activity into digital health continues to grow, exits saw a slowdown in 2015.
Despite this being the third year in a row to break 100 exit transactions (M&A and IPOs), 2015 saw a 18.6% year-over-year decrease in exit activity.
However, there were 5 companies that went public this year, equaling last year’s total number of IPOs. The offerings include Fitbit’s, which had a blockbuster $4.1B IPO after having raised only $66M.
Active acquirers
The most active acquirer of private companies in the digital health space was TELUS Health, the health care software and services arm of Canadian telecom company TELUS. Most acquirers fall into either the EMR/patient-cycle-management or fitness sectors. No acquirers have had more than 10 private company acquisitions.
| Rank | Company |
|---|---|
| 1 | TELUS Health |
| 2 | Under Armour |
| 2 | HealthStream |
| 2 | Mediware Information Systems |
| 2 | iMedX |
| 6 | McKesson |
| 6 | Allscripts Healthcare Solutions |
| 6 | Practo Technology |
| 6 | Elsevier |
| 6 | Marlin Equity Partners |
| 6 | Hearst Corporation |
| 6 | Optum |
| 6 | IMS Health |
| 6 | Quality Systems |
| 6 | Welch Allyn |
| 6 | Logibec |
| 6 | Weight Watchers International |
Largest exits
The largest digital health exits this year were the 5 IPOs. While all of them went public for valuations above $400M, they were eclipsed by Fitbit, which went public at a valuation above $4B, marking the third $1B+ digital health exit since 2010, after Veeva Systems and Castlight Health. All 5 of the now-public companies tackle very different healthcare issues: with Fitbit in wearables, Teladoc working on telemedicine solutions, Evolent Health moving health systems towards value-based care systems, MINDBODY in booking and management software, and InVitae working in genetics testing.
| Rank | Company | Exit Type |
|---|---|---|
| 1 | Fitbit | IPO |
| 2 | TelaDoc | IPO |
| 3 | Evolent Health | IPO |
| 4 | MINDBODY | IPO |
| 5 | InVitae | IPO |
| 6 | MyFitnessPal | Acquired (Under Armor) |
| 7 | Misfit Wearables | Acquired (Fossil) |
| 8 | HealthLine Systems | Acquired (HealthStream) |
| 9 | Endomondo | Acquired (Under Armor) |
| 10 | BAM Labs | Acquired (Select Comfort Corporation) |
Want more info on digital health companies? Check out our private market database below.
If you aren’t already a client, sign up for a free trial to learn more about our platform.