Mergers and acquisitions neared $15 billion among Medical Alley Association members in the second quarter of 2019, the Minnesota trade group said today.
About half of that was generated by one company — Minnetonka-based UnitedHealth Group (NYSE:UNH), which completed its long-awaited $4.3 billion acquisition of DaVita Healthcare (NYSE:DVA) in June. United also acquired two other companies in the quarter, driving its total Q2 spend to more than $7.5 billion.
Investors backed Medical Alley Association member companies at a near-record pace to start 2019, pumping over $260 million into Minnesota’s early-stage ecosystem in the first six months of the year, the medtech trade group said.
Q2 2019 M&A activity in Medical Alley
The median Q2 raise was $1.7 million — a five-year best for the second quarter — with medtech companies CVRx and MicroOptx Medical leading the way.
For the first half generally, medtech startups also attracted the most interest of any healthcare sector in Medical Alley, raising more than $186 million in six months, with an average raise just shy of $10 million. Cardiovascular health companies, particularly those treating heart failure, as well as big data and health IT companies, attracted strong investor attention.
Q2 raises took a slight downturn as companies and investors awaited the outcome of a legislative effort in Minnesota to reinstate the Angel Tax Credit Program. The program was reinstated as of July 1 and the trade group expects to see an active third quarter with more companies raising, particularly at lower dollar amounts.
