Devices & Diagnostics, Health IT, Startups

These 8 digital health M&A deals stood out in 2014

If you take a look at the 40 mergers and acquisitions in digital health this […]

If you take a look at the 40 mergers and acquisitions in digital health this year, many were by or for startups, according to a StartUp Health report published this month. It shows that these companies are maturing and seek tools and products that will expand their customer base and effectiveness. I’ve selected a few deals to highlight that touch on some of the trends in healthcare this year such as image sharing, wearables and customizing employer health plans to make them more compelling to employees. I included both of Facebook’s healthcare oriented acquisitions, bringing the total of deals covered here to eight.

Weight Watchers acquired Wello, a weight management startup that sounds a lot like a combination of telemedicine and fitness trainers. The financial details of that transaction weren’t released. Wello matches clients with a trainer vetted by the company and a workout program, automates scheduling and payment, and provides a live video connection for the workout to take place, according to its description on AngelList. It takes away the whole idea of the need to be rooted to one place to work out. It seems like the kind of option that would be especially good for people who travel a lot for business. By adding this fresh digital health startup, it adds a customizable business that increases its customer reach and contributes to the capabilities and image of a weight management company that’s 51 years old.

Covidien‘s purchase of Zephyr Technologies marked the medical device company’s first wearable acquisition and the likelihood that interest will increase. Some medical device companies see in certain wearables companies some interesting crossover how their devices fit into patients’ lives and supports the The idea is to bring remote patient monitoring technology to the general care floor in the hospital. Covidien’s initial interest is how it can help physicians, clinicians and other caregivers with remote patient access in healthcare facilities and the home.

Box acquired MedXT, a medical imaging company designed to speed up the way radiology images are shared by improving interoperability. Hospitals represent the fastest growing part of the cloud storage business. It also offers an example of a company that acquired a business it identified in its early stages through its work with accelerators. In the case of MedXT, it was with  Y-combinator.

Advisory Board Company snapped up HealthPost white label physician finder and scheduling company for $25 million. Omar Alvi founded the company in 2011 to support coordinated care on a few different fronts. In addition to helping patients schedule appointments, procedures and follow on visits with doctors, it can help health systems identify which physicians refer all of their patients within the health network and which ones don’t, as Robert Musslewhite, Advisory Company CEO noted in a conference call earlier this year.

Facebook made a couple of M&A deals in the digital health arena this year. The social network splashed into the world of fitness tracking apps with its acquisition of Moves developer ProtoGeo. The app was downloaded more than 4 million times by iPhone and Android users, according to The Wall Street Journal. It also bought virtual reality headset producer Oculus VR. To many it signifies the company’s interest in telemedicine. Its status as a social network with 1.35 billion active members as of the third quarter of this year puts it in an interesting position to market its products to a global audience.

Welltok grabbed Mindbloom Soon after digital health company Welltok raised a $22 million Series C round, the Denver-based company acquired app developer Mindbloom to strengthen its CafeWell program that helps users customize and track health goals. The round marked the first first healthcare investment from IBM’s Watson group. Mindbloom’s apps include one called Bloom that functions like a goal reminder transmitting alerts that use images and music to remind participants’ of their goals, what and who they are doing this for. Another, Juice, tracks energy levels week to week, and suggests ways for users to boost their energy, mood. The acquisition also fits into a wider trend in digital health — improving the ability of digital health companies to spur behavior change in favor of healthier habits.

Vitals’ purchase of  Compass Healthcare Advisers added more muscle to the provider ratings business by giving additional vetting criteria to its customers, theoretically allowing them to compare value and costs simultaneously. Employer wellness plans have been interested in tools that help lower healthcare costs and the deal is designed to make the job of finding appropriate matches easier.

[Photo credit: BigStock Photos]

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