HEALTHCARE IT SECTOR REVIEW | Q1 2019

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 1

HEALTHCARE IT SECTOR REVIEW | Q1 2019

K E Y C O N T A C T S

Managing Directortdewing@harriswilliams.com

Office: (617) 654-2112

Managing Directorshendler@harriswilliams.com

Office: (617) 654-2117

Managing Directormwilkins@harriswilliams.com

Office: (415) 217-3411

Managing Directortmonjauze@harriswilliams.com

Office: +44 (0) 20 7518 8901

M A R K E T C O M M E N T A R Y

• Healthcare technology assets continue to garner significant interest from both strategic and financial sponsors, as increasing regulatory complexity, ongoing technology adoption by constituents across healthcare, and the pervasive evolution towards value-based care underpin growth opportunities for innovative software tools

• Continued investor appetite for specialty and sector-specific EMR and revenue cycle management solutions, as providers demonstrate a clear preference for purpose-built, best-of-breed solutions

• Healthcare organizations continue to extend their focus beyond price and quality of care, with an increasing focus on patient and provider engagement and educational tools

• Sector innovations continue to target niche operational challenges including patient and staff management and monitoring, and compliance control solutions for vendors and clinicians

• Increasingly complex reimbursement arrangements in the face of rising healthcare costs have supported strong payer interest in specialized cost containment and payment integrity solutions

H A R R I S W I L L I A M S ( “ H W ” ) A S A F I R M T E C H N O L O G Y , M E D I A & T E L E C O M ( “ T M T ” ) G R O U P

• 330+ professionals across eight offices globally

• 140+ closed transactions in the last 24 months

• 21st record year in 2018

• 98% of revenue is from sell-side M&A advisory

• 10 industry groups

• 14 $1bn+ enterprise value engagements in the last 18 months

• 35+ professionals across Boston, San Francisco, and London

• 50+ closed transactions since the beginning of 2016

• Education Technology• Fintech• Healthcare IT• Human Capital Management• Internet & Digital Media

• Manufacturing Technology• Membership Management• Public Sector Software• Supply Chain, Transportation & Logistics• Infrastructure and Security Software

K E Y H C I T C O N T A C T S :

Directorjoussadon@harriswilliams.com

Office: 44 (0)20 7518 8909

Directoreszyndlar@harriswilliams.com

Office: (415) 217-3418

Managing Directorshendler@harriswilliams.com

Office: (617) 654-2117

Directordlinsalata@harriswilliams.com

Office: (617) 654-2122

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 2

HEALTHCARE IT SECTOR REVIEW | Q1 2019

R E C E N T R E P R E S E N T A T I V E H W H C I T T R A N S A C T I O N S

Select Market Participants

Member Onboarding / Portals Patient Outreach & Campaigns Patient Engagement /

Education Digital Wellness Tools Benefits & Consumer-Directed

Healthcare Tools Information Tools & Online

Media

Select Market Participants

Operational Efficiency Inpatient – Clinical Outpatient – Clinical Post-Acute – Clinical

Select Market Participants

Development Trials Commercialization Adherence Regulatory

Select Market Participants

Charge Capture & Coding Claims Management Adjudication / Appeal / Review Payment Processing Patient Collection Other RCM Tools Regulatory & Analytics

Select Market Participants

PHM Informatics Data Aggregation &

Normalization Privacy / Security Information Sharing /

Interoperability Population Analytics Care Coordination

has been acquired by

Provider of SaaS solutions to the behavioral health industry

&

Provider of population health management solutions

has been acquired by

a wholly-owned affiliate of

has been acquired by

Provider of patient engagement solutions

has been acquired by

Provider of cost containment solutions for healthcare payers

has been acquired by

Provider of online nutrition coaching and certifications for wellness professionals and consumers

has acquired

Provider of healthcare credentialing and payer enrollment solutions

has beenacquired by

Provider of education and GRC solutions

has been acquired by

Provider of athlete training services

has been acquired by

Provider of market access and formulary information to pharma, payers, and providers

Provider of incident reporting and risk management software

has invested in

has acquired

Provider of healthcare-specific workforce management software

has been acquired by

Provider of GRC solutions for healthcare, life sciences, and higher education

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 3

HEALTHCARE IT SECTOR REVIEW | Q1 2019

H W D E A L C O N T A C T S

iContracts is a leading cloud-based governance, risk, and compliance (“GRC”) platform with horizontal applicability and established footprints in healthcare, life sciences, and higher education. iContracts provides a comprehensive suite of solutions to aggregate contracts and policies, author, edit, and review key provisions, and drive adherence, enabling customers to minimize revenue leakage, increase operational efficiency, and ensure regulatory compliance.

R E L E V A N T H E A L T H C A R E I T S U B - S E C T O R S

C O M P A N Y O V E R V I E W

a portfolio company of

has been acquired by

Managing Directorshendler@harriswilliams.com

Office: (617) 654-2117

Directordlinsalata@harriswilliams.com

Office: (617) 654-2122

Managing Directortdewing@harriswilliams.com

Office: (617) 654-2133

Technology-driven platform that leverages proprietary workflow and automation capabilities, configurable metadata markers, and standardization tools

Market-leading footprint and blue-chip customer base across pharma, healthcare, and higher education markets

Substantial growth opportunity in existing vertical markets through cross-sell opportunities and broadening of product suite

Focused and actionable strategy for vertical expansion into highly regulated and complex end markets

Strong financial profile with significant organic and inorganic annual rate of return growth, expanding margins, solid retention, and low customer concentration

Highly talented management team with a strong track-record of operational excellence

K E Y V A L U E D R I V E R S

a portfolio company of

HW’s TMT Group advised iContracts on its acquisition by RLDatix, a portfolio company of TA Associates and Five Arrows.

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 4

HEALTHCARE IT SECTOR REVIEW | Q1 2019C

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Enterprise Value /

LTM Rev. LTM EBITDA 2019P EBITDA

2.6x 14.9x 12.3x

Enterprise Value /

LTM Rev. LTM EBITDA 2019P EBITDA

4.8x 20.8x 17.3x

Enterprise Value /

LTM Rev. LTM EBITDA 2019P EBITDA

7.2x 53.1x 30.5x

Enterprise Value /

LTM Rev. LTM EBITDA 2019P EBITDA

6.3x 30.5x 26.4x

Enterprise Value /

LTM Rev. LTM EBITDA 2019P EBITDA

3.8x 13.6x 14.3x

0%

75%

150%

225%

300%

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

S&P 500 Consumer Healthcare

0%

75%

150%

225%

300%

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

S&P 500 Payer-Focused

0%

75%

150%

225%

300%

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

S&P 500 Euro HCIT

0%

75%

150%

225%

300%

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

S&P 500 Clinical & Administrative

0%

75%

150%

225%

300%

375%

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

S&P 500 Pharma

As of March 31, 2019

(Median)

(Median)

(Median)

(Median)

(Median)

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 5

HEALTHCARE IT SECTOR REVIEW | Q1 2019

VALUATION AND OPERATING METRICS1

As of March 31, 2019 ($ in millions)

C L I N I C A L / A D M I N I S T R A T I V E

Stock Performance

Current % of LTM TEV / EBITDA

Mkt Cap TEV Price LTM High Revenue % Growth EBITDA Margin LTM 2019E

P A Y E R - F O C U S E D

P H A R M A

C O N S U M E R H E A L T H C A R E

E U R O - H C I T

EMR

Cerner Corporation $18,388 $18,056 $56.69 83.9% $5,366 4.4% $1,417 26.4% 12.7x 11.4x

Allscripts Healthcare Solutions, Inc. 1,698 2,212 9.91 66.2% 1,750 (3.1%) 172 9.8% 12.9x 5.5x

NextGen Healthcare, Inc. 1,077 1,067 16.66 70.2% 530 0.5% 72 13.5% 14.9x 13.1x

Computer Programs and Systems, Inc. 426 552 29.99 86.6% 280 1.3% 37 13.3% 14.8x 11.5x

Median $1,388 $1,639 77.1% $1,140 0.9% $122 13.4% 13.9x 11.4x

RCM / Performance

Premier Inc. $4,399 $4,396 $34.68 73.4% $1,683 1.3% $532 31.6% 8.3x 8.0x

Nuance Communications, Inc. 4,761 6,527 16.68 93.3% 2,044 3.0% 408 20.0% 16.0x 11.1x

Evolent Health Inc 1,068 952 13.46 46.3% 627 24.0% 68 10.9% 14.0x NM

R1 RCM Inc 1,093 1,416 9.92 90.2% 869 40.4% 67 7.7% 21.2x 24.8x

Median $2,746 $2,906 81.8% $1,276 13.5% $238 15.4% 15.0x 11.1x

Other Administrative

Omnicell, Inc. $3,254 $3,322 $79.75 91.8% $787 4.1% $100 12.7% 33.3x 26.5x

Vocera Communications, Inc. 1,021 912 33.15 77.8% 180 5.2% 1 0.8% NM 43.0x

HealthStream, Inc. 905 736 27.99 87.9% 232 (2.8%) 40 17.1% 18.5x 17.9x

Median $1,021 $912 87.9% $232 4.1% $40 12.7% 25.9x 26.5x

Clinical / Administrative Median $1,093 $1,416 83.9% $787 3.0% $72 13.3% 14.9x 12.3x

Inovalon Holdings $1,878 $2,721 $12.30 79.0% $528 10.9% $116 21.9% 23.5x 17.9x

HMS Holdings 2,635 2,696 30.90 81.0% 598 6.4% 149 25.0% 18.0x 16.6x

Payer-Focused Median $2,256 $2,709 80.0% $563 8.6% $133 23.5% 20.8x 17.3x

IQVIA Holdings Inc $28,006 $38,315 $141.59 97.5% $10,413 2.4% $1,951 18.7% 19.6x 17.2x

Veeva Systems Inc 17,938 16,848 123.45 95.8% 862 19.2% 237 27.5% 71.1x 54.5x

Medidata Solutions, Inc. 4,723 4,571 75.84 85.3% 636 8.4% 86 13.5% 53.1x 30.5x

Pharma Median $17,938 $16,848 95.8% $862 8.4% $237 18.7% 53.1x 30.5x

WEX Inc. $8,013 $9,819 $185.77 91.3% $1,493 8.1% $586 39.3% 16.7x 16.2x

HealthEquity Inc 4,594 4,233 73.57 72.4% 287 17.7% 96 33.4% 44.2x 36.6x

Benefitfocus, Inc. 1,505 1,553 46.98 77.4% 259 2.6% (24) NM NM NM

Castlight Health, Inc. 543 470 3.78 63.5% 156 7.2% (29) NM NM NM

Consumer Healthcare Median $3,050 $2,893 74.9% $273 7.7% $36 36.3% 30.5x 26.4x

CompuGroup Medical SE $3,145 $3,472 $59.10 94.3% $845 7.9% $215 25.4% 16.1x 16.7x

EMIS Group plc 873 873 13.78 97.6% 227 NA 72 31.7% 12.1x 14.3x

NEXUS AG 444 424 28.19 77.0% 161 7.8% 31 19.4% 13.6x 14.1x

Euro Median $873 $873 94.3% $227 7.9% $72 25.4% 13.6x 14.3x

Consolidated Median $1,878 $2,696 83.9% $627 5.8% $96 19.4% 16.4x 16.6x

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 6

HEALTHCARE IT SECTOR REVIEW | Q1 2019

• Carestream’s healthcare information systems business is a provider of imaging IT solutions to multi-site hospitals,radiology services providers, imaging centers, and specialty medical clinics around the world

• Carestream’s imaging platform includes best-in-class VNA, diagnostic and enterprise viewers, multimedia reporting,workflow orchestrator, and business analytics tools

• The acquisition expands Philips’ healthcare IT business to feature Carestream’s enterprise imaging platform as part ofits broad portfolio, which builds upon its world-class technical excellence and continued innovation offered to customers

Enterprise Value: Non-Public

Rev: Non-Public

EV / EBITDA: Non-Public

EV / Rev: Non-Public

• PrescribeWellness is a provider of cloud-based patient relationship management solutions• The Company facilitates collaboration between more than 10,000 pharmacies with patients, payers, providers, and

pharmaceutical companies• The acquisition supports Tabula Rasa’s goal of expanding medication risk mitigation programs in community pharmacies

and providing community pharmacists with clinical revenue opportunities beyond dispending, as well as furtherparticipation in Medicate Part D Medication Therapy Management programs

Enterprise Value: $150M

Rev: $32M

EV / EBITDA: Non-Public

EV / Rev: 4.7x

• M*Modal is a leading provider of cloud-based, conversation AI-powered systems that connect workflows for efficient and accurate medical speech recognition, medical transcription, clinical documentation improvement, and coding

• The Company’s solutions enable physicians to spend more time with patients and provide a higher quality of care• The acquisition of M*Modal’s technology business builds on 3M’s strategic commitment to invest in and expand its

Healthcare Information Systems business through offering additional revenue cycle management and population health capabilities

Enterprise Value: $1,000M

Rev: Non-Public

EV / EBITDA:Non-Public

EV / Rev: Non-Public

• HealthDecision is a provider of clinical decision support and shared decision making software for clinicians and patientsat the point of care

• The Company’s software platform enables advanced exploration of medical options while combining the patient’shealthcare preferences, the clinician’s expertise, patient-specific medical data, and the latest medical guidelines

• The acquisition advances EBSCO Health further into offering a breadth of content through an evidence-basedfoundation of data

Enterprise Value: Non-Public

Rev: Non-Public

EV / EBITDA: Non-Public

EV / Rev: Non-Public

• RxSolutions is a provider of customized pharmaceutical reimbursement programs for commercial and clinical supplyorganizations

• In addition to traditional pharmaceutical co-pay programs, RxSolutions has introduced RxStudy Card, which offers aninnovative way to streamline supply management for pharmaceutical manufacturers conducting clinical trials

• An acquisition of RxSolutions strengthens TrialCard’s presence in the pharmaceutical marketplace, while diversifying itscustomer base and expanding into the clinical trial space

Enterprise Value: Non-Public

Rev:Non-Public

EV / EBITDA: Non-Public

EV / Rev: Non-Public

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 7

HEALTHCARE IT SECTOR REVIEW | Q1 2019

Forbes

Preventable hospitalizations cost people, insurance companies, businesses, the government, and society considerable time, effort, and resources, that could have otherwise been allocated to more productive activities. Working to combat this preventable waste, along with not exposing patients to other potential diseases or medical issues during hospital stays, organizations are adopting artificial intelligence to reduce preventable hospitalizations. For example, machine learning algorithms can look for combinations of symptoms, medication usages, and physical exam measurements to identify potential patient concerns or areas to deploy preventative care.

Read the full article here.

March 27, 2019

HOW MACHINE LEARNINGS CAN HELP PREVENT HOSPITALIZATIONS

Healthcare IT News

Technology trends today are allowing increased accessibility into health data, and its exchange, which demands new ways of thinking about how to protect sensitive information. New dimensions of risk when it comes to cybersecurity are also being introduced, as trends move towards interoperability and the use of AI, increased patient autonomy through mobile devices, and patient data sharing. As cloud computing becomes more prevalent given the increased efficiencies at a lower cost, third-party risks, lack of understanding, and data protection come to the forefront of potential concerns.

Read the full article here.

FHIR, CLOUD, POP HEALTH, AND SOCIAL DETERMINANTS SPARK NEW SECURITY CHALLENGESMarch 20, 2019

Healthcare IT News

A new survey shows trends such as consumerism and social determinants forcing providers and payers to fundamentally rethink how care is delivered and reimbursed. Given the changing environment towards increased access, convenience, and cost transparency for consumers, healthcare organizations are positioning themselves where patient experience and population health management are essential keys to success. While not all healthcare providers are incorporating social determinant data yet into their population health efforts, those that are have seen healthier patient populations along with increased reimbursements and revenue.

Read the full article here.

INDUSTRY FACING HEADWINDS IN A ‘PERFECT STORM’ OF DISRUPTIONMarch 18, 2019

Deloitte

As the health insurance industry continues to evolve, transformational changes are expected as the sector transitions from a treatment-based model to a model focused on wellbeing and prevention. This new model within the industry will have a critical focus on data, and data interoperability, with the caveat of consumers owning their own data and level of or lack of willingness to share. According to industry research, as the health plan business model transforms, focus will be pulled away from claims processing and risk management, and re-focused on wellbeing and care of delivery, care enablement, and the underlying data platform.

Read the full article here.

March 5, 2019

HOW INTEROPERABLE DATA AND A RENEWED FOCUS ON WELLNESS IS TRANSFORMING BUSINESS MODELS

Modern Healthcare

Given the fast paced environment in emergency rooms, one challenge noted by New York-Presbyterian/Weill Cornell Medical Center is the tedious yet critical process of performing a thorough medication reconciliation for patients being triaged. Performing a proper medication reconciliation can lead to the prevention of adverse drug events, which occur in nearly 5% of hospitalized patients. In order to combat this issue, organizations such as NY Presbyterian have expanded telehealth teams of pharmacy technicians alongside computer-aided decision support to conduct virtual consultations across multiple emergency sites and outpatient units.

Read the full article here.

USING TELEHEALTH TO CONDUCT MEDICATION RECONCILIATIONMarch 2, 2019

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 8

HEALTHCARE IT SECTOR REVIEW | Q1 2019

SELECT RECENT M&A TRANSACTIONS1

Closed Date Target Acquirer Business Description

Enterpise

Value

Implied

EV/Revenue

Implied

EV/EBITDA

Pending Company A HW Confidential HW Confidential * * *

Pending Carestream Health (HCIS business) Royal Philips NV Prov ider of imaging IT solutions. * * *

05/29/2019 iContracts RL Datix (TA Associates, Fiv e Arrows) Prov ider of rev enue, contract, and policy management solutions. * * *

04/02/2019 API Healthcare Symplr; Clearlake Capital Prov ider of healthcare human capital management software. * * *

03/05/2019 Prescribe Wellness Tabula Rasa Healthcare, Inc. Prov ider of pharmacy software solutions. $150.0 5.2x *

03/04/2019 Anju Software ABRY Partners, LLC Prov ider of software and data serv ices to life sciences industry. $155.0 4.8x 12.4x

02/11/2019 Qualcomm Life (Capsule Technologies) Francisco Partners Management LLC Prov ider of medical dev ice and connectiv ity solutions. * * *

02/01/2019 MModal Inc. (Technology Business) 3M Prov ider of health technology solutions and serv ices. $1,000.0 * *

02/01/2019 Nuane Document Imaging Kofax; Thoma Brav o Prov ider of image scanning automated software. $500.0 * *

01/24/2019 PreCheck Cisiv e; CIP Capital Prov ider of backgroun screening, compliance monitoring, and credentialing solutions. * * *

01/24/2019 HealthDecision EBSCO Information Serv ices Prov ider of software that retriev es data from EMRs. * * *

01/17/2019 RxSolutions TrialCard; Odyssey Inv estment Prov ider of customized pharmaceutical reimbursement programs. * * *

01/16/2019 HIMSS Analytics (Data Serv ice Business) Definitiv e Healthcare; Spectrum Equity Prov ider of data serv ices solutions. * * *

01/08/2019 Influence Health, Inc. Healthgrades Prov ider of integrated digital consumer engagement platform. * * *

01/03/2019 Healthline Solutions Medsphere Systems Prov ider of healthcare information technology solutions. * * *

12/19/2018 HHAexchange Cressey & Co. Prov ider of healthcare software solutions to the home care industry. * * *

12/14/2018 Consolo Serv ices WellSky; TPG Capital Prov ider of web-based, hospice-specific software. * * *

12/04/2018 Propeller Health ResMed Prov ider of digital medicine platform for patients with COPD and asthma. $225.0 * *

12/03/2018 Aetna CVS Health Prov ider of healthcare benefit serv ices. $70,000.0 1.1x 11.7x

12/03/2018 Parata Systems TCGRx; Frazier Healthcare Partners Prov ider of pharmacy technology serv ices. * * *

11/30/2018 athenahealth, Inc. Veritas Capital; Ev ergreen Coast Capital Prov ider of cloud-based serv ices and mobile applications for medical groups and health systems. $5,467.8 4.2x 16.3x

11/27/2018 Simplywell, Inc. Virgin Pulse; Marlin Equity Prov ider of wellness and health engagement solutions. * * *

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 9

HEALTHCARE IT SECTOR REVIEW | Q1 2019

SELECT RECENT M&A TRANSACTIONS1

Closed Date Target Acquirer Business Description

Enterpise

Value

Implied

EV/Revenue

Implied

EV/EBITDA

11/16/2018 MMIT Welsh, Carson, Anderson & Stowe Prov ider of market access and formulary information for pharma, payers, and prov iders. * * *

11/13/2018 MatrixCare ResMed Prov ider of software for the eldercare industry. $750.0 6.1x 25.0x

11/12/2018 Aramark Healthcare Technologies TriMedx Prov ider of biomedical and diagnositc imaging serv ice solutions. $300.0 * *

11/08/2018 HealthLoop, Inc. GetWellNetwork, Inc.; WCAS Prov ider of SaaS-based patient engagement platform. * * *

11/06/2018 Stanson Health Premier Healthcare Solutions, Inc. Prov ider of clinical decision support platform. $66.5 * *

11/06/2018 Medical Networking, Inc. MJH Associates Prov ider of SaaS-based platform for medicine and healthcare. * * *

11/01/2018 OnCourse Learning Bertelsmann Prov ider of education and GRC solutions. * * *

10/24/2018 Symplr Clearlake Capital Prov ider of healthcare credentialing and payer enrollment solutions. * * *

10/23/2018 Global Healthcare Alliance Cedar Gate Technologies Prov ider of bundled payment technologies for claims and payment management. * * *

10/16/2018 Applied Logic Inc. Censis Technologies Prov ider of software for surgical products. * * *

10/11/2018 Apex Information Technologies Rev Spring; GTCR Prov ider of rev enue cycle management software to the healthcare industry. * * *

10/09/2018 Doctorbell Mobile Health Prov ider of patient engagement solutions offering instant medical adv ice. * * *

10/08/2018 COMS Interactiv e PointClickCare Technologies Prov ider of processes and systems for post-acute care facilities. * * *

09/30/2018 RadicaLogic Technologies, Inc. Datix Ltd. Prov ider of patient safety, compliance, and risk management software. * * *

09/17/2018 Connance Waystar (Bain Capital) Prov ider of healthcare rev enue cycle software. * * *

09/06/2018 Alegeus Technologies LLC Vista Equity Partners Prov ider of benefit administration and payment processing software. $750.0 * *

09/04/2018 Adv ancedMD, Inc. Global Payments, Inc. Prov ider of cloud-based SaaS solutions to small-to-medium sized ambulatory physician practices. $700.0 * *

08/27/2018 Cotiv iti Holdings, Inc. Verscend Technologies Prov ider of payment accuracy and analytic-driv en solutions. $4,732.0 6.4x 16.0x

08/20/2018 Kinapse Syneos Health Prov ider of end-to-end clinical and commercial serv ices. * * *

08/14/2018 SRAXmd Halyard Capital Prov ider of healthcare and pharmaceutical digital adv ertising. $52.5 * *

07/24/2018 Therapy Brands Lightyear Capital, Oak HC/FT Prov ider of web-based practice management software for the behav ioral health industry. * * *

06/25/2018 iManaged Solutions Netgain, Bluff Point Associates Prov ider of priv ate cloud-based solutions for optometry field. * * *

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 10

HEALTHCARE IT SECTOR REVIEW | Q1 2019

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS2

Closed Date Target Lead Investor(s) Business Description

Round /

Stage

Money

Raised

Raised to

Date

03/19/2019 Unite US Oak HC/FT Prov ider of SaaS platform to build coordinated care networks. B $35.0 $45.0

03/15/2019 Kyruus McKesson Prov ider of information exchange platform for healthcare prov iders and patients. C $17.0 $83.5

03/14/2019 Artemis Health Bessemer Venture Partners Prov ider of healthcare analytics platform. C $25.0 $58.5

03/07/2019 MAP Health Management Aetna Prov ider of cloud-based behav ioral health population management platform. A $25.0 $25.0

03/06/2019 Halodoc UOB Venture Management Prov ider of digital healthcare platform. B $65.0 $78.0

03/04/2019 NextHealth Technologies TT Capital Partners Prov ider of healthcare analytics platform to reduce costs. B $17.0 $26.0

02/07/2019 Health Catalyst OrbiMed Prov ider of healthcare data warehousing and analytics.Late-Stage

VC$100.0 $391.0

02/07/2019 Kensci Polaris Partners Prov ider of healthcare risk prediction platform. B $22.0 $30.5

02/06/2019 DNAnexus GV, Foresite Capital Prov ider of biomedical informatics and data management.Late-Stage

VC$68.0 $193.0

02/04/2019 Aetion McKesson, Sanofi Prov ider of healthcare technology platform for real-world analytics and ev idence. B $29.5 $77.0

01/29/2019 Clov er Health Greenoaks Capital Partners Prov ider of PPO intended to improv e quality of life.Late-Stage

VC$500.0 $925.0

01/25/2019 MindCare Solutions MedCare Inv estment Funds Prov ider of telemedicine and tele-behav ioral health platform. A $28.0 $30.5

01/16/2019 Tyto Care Ping An Insurance Prov ider of mobile health company designed to transform primary care. C $33.5 $52.0

01/07/2019 EarlySense Wells Fargo Strategic Capital Prov ider of patient monitoring systems.Late-Stage

VC$39.0 $152.0

01/04/2019 Pear Therapeutics Temasek Holdings Prov ider of software-based digital therapeutics platform. C $64.0 $139.0

01/01/2019 Innov accer M12, WestBridge Capital Prov ider of data activ ation platform for healthcare organizations. B $35.0 $51.0

12/17/2018 SonarMD BlueCross BlueShield Venture Partners Prov ider of a cloud-based care management platform. A $10.0 $12.5

12/14/2018 Eden Health Brand Foundry Ventures Prov ider of an online personal health platform. A $10.0 $13.8

12/10/2018 Viv ante Health NFP Ventures Prov ider of digital healthcare platform for chronic conditions. A $6.0 $6.0

12/06/2018 Weav e Communications (2) Lead Edge Capital Prov ider of patient communication solutions. C $37.5 $86.1

12/06/2018 Innov u Undisclosed Prov ider of health data management and analytics platform. A $2.7 $17.7

12/05/2018 Boulder Care First Round Capital Prov ider of digital health platform for opiate use. Seed $3.7 $3.7

12/04/2018 Lumeon Life Sciences Partners Prov ider of care pathway management solutions.Late-Stage

VC$28.0 $43.0

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 11

HEALTHCARE IT SECTOR REVIEW | Q1 2019

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS2

Closed Date Target Lead Investor(s) Business Description

Round /

Stage

Money

Raised

Raised to

Date

11/29/2018 Bright Health New Enterprise Associates Prov ider of health insurance serv ice platform. C $200.0 $441.7

11/27/2018 HNI Healthcare CRG Prov ider of technology-enabled physician practice management platform. Late-Stage

VC$65.0 $130.0

11/26/2018 CareSyntax Mitsubishi Chemical Holdings Prov ider of IoT technology solution for surgical analytics and integration serv ices. B $25.0 $68.7

11/19/2018 HealthifyMe Sistema; InnoVen Capital Prov ider of an online fitness application intended to help people reach their goals. B $18.0 $25.1

11/19/2018 ClearData Humana; Merck Prov ider of security and compliance solutions in the healthcare cloud.Late-Stage

VC$26.0 $80.4

11/17/2018 Adv era Health Analytics Undisclosed Prov ider of a healthcare data aggregation platform. A $0.7 $2.7

11/15/2018 Eaze DCM Ventures Prov ider of an on-demand healthcare application. C $65.0 $116.5

11/13/2018 Liv ely (Application Software) Costanoa Ventures Prov ider of an HAS platform for indiv iduals and businesses. A $15.1 $19.5

11/13/2018 LeanTaaS Insight Venture Partners Prov ider of hospital management platform to transform healthcare operations. C $15.0 $45.3

11/13/2018 Adv antia Health Undisclosed Prov ider of an integrated healthcare deliv ery network. Late-Stage

VC$12.5 $43.1

11/13/2018 HealthiPASS QED Inv estors Prov ider of healthcare payment solutions. A $10.2 $12.3

11/09/2018 Synyi Xiang He Capital Prov ider of AI-powered medical data platform. B $19.7 $44.9

11/07/2018 Force Therapeutics Insight Venture Partners Prov ider of digital care deliv ery platform to streamline connections.Late-Stage

VC$21.0 $25.8

11/05/2018 Oncology Analytics Oak HC/FT Prov ider of healthcare utilization manageemnt technology. B $21.0 $28.5

11/01/2018 IntelyCare Rev elation Partners Prov ider of an intelligence healthcare workforce management platform. A $10.8 $13.8

10/30/2018 Think Research National Bank of Canada Prov ider of cloud-based healthcare platform. Late-Stage

VC$25.0 $25.0

10/29/2018 Piv ot (Digital Health) Johnson & Johnson Innov ation Prov ider of digital health and wearable technology. B $25.0 $42.4

10/22/2018 Hospital IQ Undisclosed Prov ider of a healthcare operations planning and managemenet analytics platform. B $10.0 $23.3

10/17/2018 Comprehend Eminence Capital Prov ider of cloud-based clinical intelligence solutions. C $29.7 $62.0

10/16/2018 Dev oted Health Adndreessen Horowitz Prov ider of healthcare serv ices to improv e quality of patient care. B $300.0 $369.4

03/15/2019 Kyruus McKesson Prov ider of information exchange platform for healthcare prov iders and patients. C $17.0 $83.5

10/09/2018 Kareo Undisclosed Prov ider of medical office software to help physicians get paid faster.Late-Stage

VC$9.9 $148.4

09/26/2018 Mav en Sequoia Capital Prov ider of a digital health platform. B $27.0 $42.5

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HEALTHCARE IT SECTOR REVIEW | Q1 2019

R E P R E S E N T A T I V E P R O V I D E R , P A Y E R , A N D C O N S U M E R T O O L S

INFORMATION TOOLS AND ONLINE MEDIA DIGITAL WELLNESS BENEFITS & CONSUMER-DIRECTED HEALTHCARE TOOLS

Consumer Tools

MEMBER ONBOARDING / PORTALS PATIENT OUTREACH & CAMPAIGNS PATIENT ENGAGEMENT / EDUCATION

PR

OV

IDER

PA

YER

Provider and Payer Tools

T O V I E W F U L L M A R K E T M A P P L E A S E C O N T A C T :

* T M T _ H C I T @ H A R R I S W I L L I A M S . C O M

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 13

HEALTHCARE IT SECTOR REVIEW | Q1 2019

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T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 14

HEALTHCARE IT SECTOR REVIEW | Q1 2019

HARRIS WILLIAMS OFFICE LOCATIONS

Healthcare & Life Sciences Industrials

Energy, Power & Infrastructure

Industrials

Harris Williams has a broad range of industry expertise, which create powerful opportunities. Our clients benefit form our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries.

U N I T E D S T A T E S E U R O P E

N E T W O R K O F F I C E S

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Aerospace, Defense &

Government Services

Building Products & Materials

Business Services

Consumer Specialty Distribution

Technology, Media & Telecom

Transportation & Logistics

BostonOne International PlaceSuite 2620Boston, Massachusetts 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072

San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288-4260

Washington, D.C. 800 17th St. NW2nd FloorWashington, D.C. 20006Phone: +1 202-207-2300

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 15

HEALTHCARE IT SECTOR REVIEW | Q1 2019

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

1 . F A C T S E T .

2 . P I T C H B O O K .

Disclosures

Sources