Total transacted revenue of $12B for the quarter is near historically high levels, finds Kaufman Hall.
April 18, 2024, Jeff Lagasse, Editor –
The first quarter of 2024 saw a significant uptick in merger and acquisition activity, with 20 announced transactions – which, according to Kaufman Hall, represents the strongest first quarter since Q1 2020, just before the start of the COVID-19 pandemic.
Of the 20 announced transactions, four were mega mergers (defined as the smaller party having annual revenues of $1 billion or more). That’s one of the highest numbers of mega mergers in the firm’s memory, and has contributed to average seller size and total transacted revenue figures that remain at historically high levels.
The mega merger count includes Tenet Health’s sale of four California hospitals to UCI Health, which Tenet notes “generated revenues of approximately $1 billion” in 2023, right at the mega merger threshold.
In the other three mega mergers, Northwell Health acquired Connecticut-based Nuvance Health; University of Minnesota acquired M Health Fairview University of Minnesota Medical Center; and HATCo acquired Summa Health System. Kaufman Hall did not list the transaction amounts for those mergers.
Academic health systems also had an active quarter, acting as the acquirer (or larger party) in six of the 20 transactions.
