GI consolidation in 2019: PE and other deals thus far


GI consolidation in 2019: PE and other deals thus far

Towards the end of 2018, we saw two back-to-back PE platform announcements: The GI Alliance (by Texas Digestive Disease Consultants) and United Digestive (by Atlanta Gastroenterology Associates). That seemed to have laid the ground for deals in 2019.
It has been a busy year for GI consolidation. Sometimes we don’t realize the pace of activity unless we look at it all at once (see the illustration above).
Here’s the list:
February 2019: Gastro Health acquiring Gastroenterology Specialists, continuing Florida expansion efforts — 4 insights (Becker’s ASC)
April 2019: Birmingham health group acquired by Miami-based Gastro Health (Birmingham Business Journal)
May 2019: $130M private equity deal to unite 3 GI practices, create 7th largest group in US (Becker’s ASC) – * 4th PE-funded GI platform
July 2019: Illinois Gastroenterology Group joins the GI Alliance (PR Newswire) 
July 2019: Covenant partners with Arizona specialty clinics (Nashville Post) 
August 2019: Physicians Endoscopy, Capital Digestive Care team up to create management platform (Becker’s ASC) – * Alternative to PE funded platforms
September 2019: GI Alliance partners with Southeast Texas Gastroenterology Associates — 4 insights (Becker’s ASC)
September 2019: Gastro Health acquires Puget Sound Gastroenterology, a premier provider serving the Seattle area (Yahoo Finance) 
October 2019: Arizona Digestive Health joins GI Alliance (PR Newswire) 
October 2019: GI Alliance forms 2 partnerships in 5 days — Adds Texas GI partner (Becker’s ASC) 
November 2019: Indianapolis Gastroenterology and Hepatology joins GI Alliance (PR Newswire) 
November 2019: United Digestive expands in Georgia, partners with the Center for Digestive & Liver Health (Business Wire)
November 2019: GI Alliance partners with Amarillo Endoscopy Center — 3 insights (Becker’s GI & Endoscopy)
November 2019: Gastro Health establishes platform for growth in the Mid-Atlantic through acquisition of Gastroenterology Associates of Northern Virginia (Gasto Health website)
Expect more announcements in the coming weeks and months. My sources tell me there are at least 16-20 deals in the works.

_

By Praveen Suthrum, President & Co-Founder, NextServices. 

Our new book Private Equity in Gastroenterology – Navigating the Next Wave is still available for download. Here was the best compliment we got to date: “I need my entire board to read this!”
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