Transformation of the market and its impact on software firms
Healthcare-IT has experienced strong growth in recent years but the actual rise still lies ahead. The transformation of the healthcare industry into ‘Digital Health’ is gaining momentum and will involve fundamental changes for providers of health software in the next couple of years.
The global market for health IT has seen a strong rise in M&A activity and startup funding over the last years. Average multiples of around 25x EBITDA paid for Health-IT acquisitions reveal the attractiveness for investors. Germany lags behind health digitization and has a mostly unconsolidated market structure with few large players and a wide field of small but highly specialized providers. The digital transformation of healthcare will push software developers – small and large – into seeking partnerships and cooperation. Thus, the German market is expected to enter into a deep consolidation process.