A Look Back at the Top Mergers of 2021

by | Jan 12, 2022 | blog, David C. Branch, Finance

A Look Back At The Top Mergers Of 2021 - David C. Branch

2021 saw some of the biggest names in healthcare and technology complete big-ticket merger deals. This includes A-lost names like Microsoft and Oracle to AthenaHealth and Kantar Health.

Oracle Gets Cerner

This was Oracle’s most significant buy ever. Wall Street observers were abuzz for months as rumors of this deal floated among insiders. In the end, the merger came in at $28.3 billion. This deal will add an expansive customer base within the healthcare sector that will charge Oracle’s cloud computing and database services.

Microsoft Nabs Nuance Communications

This became the second-largest merger deal of 2021. In this case, a massive legacy firm (Microsoft) paid $19.7 billion for Nuance. The latter is a leader in AI innovations that bring a range of intellectual abilities to everyday life in the office. Its specific areas are communications and human language. Nuance products amplify human intelligence by improving the way people communicate.

PE Firms Buy Athenahealt

Two private equity firms, Hellman & Friedman and Bain Capital, joined forces to buy athenahealth for $17 billion. This marks the second time the healthcare IT firm has been acquired. Veritas Capital bought it for $5.7 billion three years ago. The new acquisition of athenahealth will be finalized by the end of the first quarter of 2022.

Baxter Takes on Hillrom

The medical-products company Baxter paid $10.5 billion to acquire Hillrom. The latter makes technologies for care and clinical collaboration purposes. Baxter wants to move its capabilities beyond the hospital setting and provide a broader scope of services to more players within the healthcare sector.

Vocera Acquires PatientSafe Solutions

This is a significant merger, although the deal’s price has been withheld. PatientSafe develops cloud technology that combines nurse call notifications, messaging, and voice alerts from the EHR. This helps clients manage workflows by way of a smartphone app. Vocera is a San Jose-based communications firm that creates systems for better treatment of patients.

Optum Absorbs Change Healthcare

Optum put up $13 billion to buy Change Healthcare, a Nashville-based firm. This deal included $8 billion in cash and an agreement to take on Change Healthcare’s $5 billion debt. Both these companies operate in handling clinical and administrative payment processes. Optum is based in Minnesota and is also a pharmacy benefits manager.