Healthcare It Sector Review | Q4 2018 Healthcare It Sector Review | Q4 2018

HEALTHCARE IT SECTOR REVIEW | Q4 2018 HEALTHCARE IT SECTOR REVIEW | Q4 2018

HARRIS WILLIAMS (“HW”) AS A FIRM TECHNOLOGY, MEDIA & TELECOM (“TMT”) GROUP

• 300+ professionals across eight offices globally • 35+ professionals across Boston, San Francisco, and London • 140+ closed transactions in the last 24 months • 53+ closed transactions since the beginning of 2016 • 21st record year in 2018 • 98% of revenue is from sell-side M&A advisory • Education Technology • Manufacturing Technology • 10 industry groups • Fintech • Membership Management • Healthcare IT • Public Sector Software • 14 $1bn+ enterprise value engagements in the last 18 • Human Capital Management • Supply Chain, Transportation & Logistics months • Internet & Digital Media • Infrastructure and Security Software

MARKET COMMENTARY

• 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

KEY CONTACTS

Managing Director Managing Director Managing Director Managing Director Managing Director [email protected] [email protected] [email protected] [email protected] [email protected] Office: (617) 654-2102 Office: (617) 654-2112 Office: (617) 654-2117 Office: +44 (0) 20 7518 8901 Office: (415) 217-3411

Director Director K E Y H C I T Managing Director Director [email protected] [email protected] CONTACTS: [email protected] [email protected] Office: (415) 217-3418 Office: 44 (0)20 7518 8909 Office: (617) 654-2117 Office: (617) 654-2122

TECHNOLOGY, MEDIA & TELECOM PAGE | 1 HEALTHCARE IT SECTOR REVIEW | Q4 2018

. Member Onboarding / Portals . Operational Efficiency . Development . Charge Capture & Coding . PHM Informatics . Patient Outreach & Campaigns . Inpatient – Clinical . Trials . Claims Management . Data Aggregation & . Patient Engagement / . Outpatient – Clinical . Commercialization . Adjudication / Appeal / Review Normalization Education . Post-Acute – Clinical . Adherence . Payment Processing . Privacy / Security . Digital Wellness Tools . Regulatory . Patient Collection . Information Sharing / . Benefits & Consumer-Directed . Other RCM Tools Interoperability . Regulatory & Analytics Healthcare Tools . Population Analytics . Information Tools & Online . Care Coordination Media

Select Market Participants Select Market Participants Select Market Participants Select Market Participants Select Market Participants

RECENT REPRESENTATIVE HW HCIT TRANSACTIONS

Provider of Provider of Provider of Provider of Provider of Provider of market access healthcare education and SaaS solutions population incident a wholly-owned affiliate of and formulary credentialing GRC solutions to the health reporting and information to and payer behavioral management risk has been has been has been pharma, has acquired enrollment health industry solutions has invested in management acquired by payers, and solutions acquired by acquired by software has been providers & acquired by

Provider of Provider of Provider of Provider of Provider of Provider of athlete training patient cost online nutrition revenue cycle cloud-based, services engagement containment coaching and management vendor- solutions solutions for certifications solutions for agnostic has been has been has been has been has been healthcare has been for wellness physicians population acquired by acquired by acquired by acquired by acquired by payers acquired by professionals offices health and management consumers Undisclosed solutions Strategic Buyer

TECHNOLOGY, MEDIA & TELECOM PAGE | 2 HEALTHCARE IT SECTOR REVIEW | Q4 2018

HW’s TMT Group advised MMIT on its acquisition by Welsh, Carson, Anderson & Stowe.

RELEVANT HEALTHCARE IT SUB - SECTORS

a portfolio company of COMPANY OVERVIEW MMIT is a leading provider of SaaS-based pharmaceutical data and analytics solutions for market access to pharmaceutical manufacturers, payers, and prescribers. Through a comprehensive data set built through years of experience within multiple segments of healthcare, MMIT focuses on providing the industry source of truth for drug policy and restriction information.

KEY VALUE DRIVERS has been acquired by . Comprehensive data set built through years of experience across multiple segments of healthcare . Largest database of drug policy and restriction information in the market . Core software backbone that facilitates formulary management, digital distribution, and compliance for payers . Extensive blue-chip client base with over 200 logos, including 80% of the top 50 pharma manufacturers and payers managing over 100 million insured lives . Well-defined growth vectors to accelerate sales of specialty and oncolytic indication data HW DEAL CONTACTS

Managing Director Managing Director Director [email protected] [email protected] [email protected] Office: (617) 654-2117 Office: (804) 932-1326 Office: (617) 654-2122

TECHNOLOGY, MEDIA & TELECOM PAGE | 3 HEALTHCARE IT SECTOR REVIEW | Q4 2018

As of December 31, 2018

300% (Median) 225% Enterprise Value / 150% LTM Rev. LTM EBITDA 2019P EBITDA 75% 2.6x 15.8x 12.0x 0%

CLINICAL & & CLINICAL Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

ADMINISTRATIVE S&P 500 Clinical & Administrative

300% (Median)

- 225% Enterprise Value / 150% LTM Rev. LTM EBITDA 2019P EBITDA

75% 5.0x 22.5x 17.4x PAYER

0% FOCUSED Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

S&P 500 Payer-Focused

300% (Median)

225% Enterprise Value / 150% LTM Rev. LTM EBITDA 2019P EBITDA 75% 6.7x 46.1x 26.9x

PHARMA 0% Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

S&P 500 Pharma

300% (Median)

225% Enterprise Value / 150% LTM Rev. LTM EBITDA 2019P EBITDA 75% 6.2x 26.4x 21.7x 0%

CONSUMER CONSUMER Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 HEALTHCARE S&P 500 Consumer Healthcare

300% (Median)

225%

HCIT Enterprise Value /

- 150% LTM Rev. LTM EBITDA 2019P EBITDA 75% 3.3x 14.1x 12.6x 0% EURO Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

S&P 500 Euro HCIT

TECHNOLOGY, MEDIA & TELECOM PAGE | 4 HEALTHCARE IT SECTOR REVIEW | Q4 2018

VALUATION AND OPERATING METRICS1 As of December 31, 2018 ($ in millions)

Stock Performance Current % of LTM TEV / EBITDA Mkt Cap TEV Price LTM High Revenue % Growth EBITDA Margin LTM 2019E

CLINICAL / ADMINISTRATIVE EMR Cerner Corporation $17,891 $17,519 $54.30 73.9% $5,314 4.5% $1,459 27.5% 12.0x 11.1x Allscripts Healthcare Solutions, Inc. 1,794 4,000 10.27 63.7% 2,079 21.3% 218 10.5% 18.4x 9.5x NextGen Healthcare, Inc. 1,025 1,027 15.85 66.8% 531 1.4% 70 13.1% 14.7x 12.9x Computer Programs and Systems, Inc. 344 477 24.44 70.5% 286 8.6% 38 13.1% 12.7x 10.6x Median $1,410 $2,514 68.7% $1,305 6.6% $144 13.1% 13.7x 10.8x RCM / Performance Premier Inc. $4,948 $4,913 $37.11 78.6% $1,672 2.6% $518 31.0% 9.5x 8.9x Nuance Communications, Inc. 4,095 5,829 14.24 75.9% 2,052 4.3% 374 18.2% 15.6x 9.6x Evolent Health Inc 1,441 1,309 18.39 63.3% 548 16.9% 49 8.9% 26.9x NM R1 RCM Inc 918 1,242 8.33 75.7% 746 46.2% 37 5.0% 33.1x 22.7x Median $2,768 $3,111 75.8% $1,209 10.6% $211 13.6% 21.2x 9.6x Other Administrative Omnicell, Inc. $2,521 $2,662 $63.63 80.1% $774 3.4% $83 10.7% 32.1x 21.2x Vocera Communications, Inc. 1,198 1,093 39.22 92.5% 176 5.9% 3 1.7% NM 51.1x HealthStream, Inc. 793 618 24.52 77.0% 235 (3.3%) 39 16.5% 16.0x 15.4x Median $1,198 $1,093 80.1% $235 3.4% $39 10.7% 24.1x 21.2x Clinical / Administrative Median $1,441 $1,309 75.7% $746 4.5% $70 13.1% 15.8x 12.0x

PAYER - FOCUSED

Inovalon Holdings $2,012 $2,864 $13.20 84.9% $506 16.6% $106 20.9% 27.1x 17.9x HMS Holdings 2,476 2,592 29.51 77.4% 591 7.7% 145 24.5% 17.9x 16.9x Payer-Focused Median $2,244 $2,728 81.1% $548 12.1% $125 22.7% 22.5x 17.4x

PHARMA IQVIA Holdings Inc $22,906 $32,891 $115.66 85.4% $10,298 3.2% $1,950 18.9% 16.9x 14.8x Veeva Systems Inc 12,726 11,674 86.02 78.9% 815 18.9% 209 25.6% 55.9x 38.5x Medidata Solutions, Inc. 4,215 4,111 68.89 77.5% 610 7.4% 89 14.6% 46.1x 26.9x Pharma Median $12,726 $11,674 78.9% $815 7.4% $209 18.9% 46.1x 26.9x

CONSUMER HEALTHCARE

WEX Inc. $6,109 $7,943 $141.74 69.7% $1,440 9.6% $561 39.0% 14.1x 12.8x HealthEquity Inc 3,720 3,390 59.63 58.7% 272 18.5% 88 32.3% 38.6x 30.7x Benefitfocus, Inc. 1,657 1,736 51.86 93.5% 251 (1.7%) (18) NM NM NM Castlight Health, Inc. 298 235 2.13 35.8% 151 8.0% (40) NM NM NM Consumer Healthcare Median $2,689 $2,563 64.2% $261 8.8% $35 35.6% 26.4x 21.7x

EURO - HCIT CompuGroup Medical SE $2,322 $2,663 $43.62 58.4% $816 14.9% $187 23.0% 14.2x 13.0x EMIS Group plc 730 730 11.53 81.6% 223 NA 52 23.1% 14.1x 11.4x NEXUS AG 414 386 26.30 71.9% 153 7.2% 32 20.6% 12.2x 12.6x Euro Median $730 $730 71.9% $223 11.0% $52 23.0% 14.1x 12.6x

Consolidated Median $2,012 $2,662 75.9% $591 7.5% $88 18.9% 16.4x 13.9x

TECHNOLOGY, MEDIA & TELECOM PAGE | 5 HEALTHCARE IT SECTOR REVIEW | Q4 2018

• Propeller Health is a digital therapeutics company providing connected health solutions for individuals with chronic obstructive pulmonary disease (COPD) and asthma Enterprise Value: EV / Rev: • Propeller’s solutions help to more effectively treat COPD and demonstrated a 58% improvement in medication $225M Non-Public adherence, 48% increase in symptom-free days, and 53% reduction in emergency room visits Rev: EV / EBITDA: • An acquisition of Propeller deepens ResMed’s current suite of cloud-connected products for those with later-stage Non-Public Non-Public COPD, and enhances its overall device, hardware, and software footprint within respiratory

• Aetna is a provider of healthcare benefit services, offering individuals innovative benefits, products, and services • With the acquisition, CVS hopes to become a destination for more than just flu shots across its 9,800 retail outlets and Enterprise Value: EV / Rev: 1,100 MinuteClinics to Aetna’s 22 million medical members by adding additional health services focused on managing $70B 1.1x common chronic conditions, and guiding discharged patients through their at-home plans Rev: EV / EBITDA: • An acquisition of Aetna allows CVS to continue to address healthcare spending through lower-cost medical services in $61.2B 11.7x pharmacies

• Athenahealth is a provider of EMR, RCM, patient engagement, care coordination, and population health services through partners with hospital and ambulatory organizations Enterprise Value: EV / Rev: • Athenahealth’s solutions serve a network of more than 120,000 providers and approximately 117 million patients $5.4B 4.7x • Veritas Capital is expected to combine athenahealth with Virence Health, formerly GE Centricity, to establish a leading Rev: EV / EBITDA: software vendor for the sub-acute care market $1.3B 20.2x

• MatrixCare is a leading provider of clinical and administrative software for long-term, post-acute care providers • MatrixCare’s solutions serve more than 15,000 providers across skilled nursing, life plan communities, senior living, and Enterprise Value: EV / Rev: private duty $750M 6.1x • ResMed’s acquisition of MatrixCare further expands its out-of-hospital SaaS portfolio into the under-served long-term Rev: EV / EBITDA: care setting market $122M 25.0x

• Aramark Healthcare Technologies (Aramark HCT) is a provider of healthcare technology services ranging from repair and maintenance to outsourcing of clinical engineering services Enterprise Value: EV / Rev: • Aramark’s solutions are utilized by over 500 healthcare providers nationwide $300M Non-Public • An acquisition of Aramark HCIT allows TriMedx to deliver its technology-driven solutions to a broader set of healthcare Rev: EV / EBITDA: provider customers, driving clinical and financial results Non-Public Non-Public

TECHNOLOGY, MEDIA & TELECOM PAGE | 6 HEALTHCARE IT SECTOR REVIEW | Q4 2018

POPULATION HEALTH PLATFORMS EVOLVE WITH AI AND MACHINE LEARNING FOR VALUE-BASED CARE Healthcare IT News December 13, 2018 With increasing competition in value-based payment models, platforms are required to provide more customized PHM programs. Providers are increasingly focused on ROI from PHM solutions, which has resulted in a more holistic and evidence-based approach covering high-risk and at-risk patients with more preventative care solutions. In order to best allocate resources, PHM vendors are more heavily relying on machine learning, the use of predictive disease modeling, and automated risk stratification techniques Read the full article here. FINANCIAL BARRIERS STILL GET IN THE WAY OF TELEMEDICINE ADOPTION Modern Healthcare December 3, 2018 Small physician-owned practices have been slow to adopt virtual care due to financial barriers, with only 8.2% of these practices using telemedicine for patient interactions, compared to the 26.5% usage by large practices. There is also a large variance of adoption among specialties, with almost 40% of radiology using telemedicine for patient interaction, and only 6% of internal medicine providers with allergy or immunology specials adopting the platform. Albeit a slower adoption, telemedicine is proven to be on the rise with telemedicine visits among large practices growing over 260% annually from 2015 to 2017. Read the full article here. THE QUEST FOR IDENTIFIED DATA: WHY SOME FIRMS ARE BYPASSING HOSPITALS Fierce Healthcare November 14, 2018 There is potential for a large paradigm shift in data collection, as data brokers have recently begun moving outside of the traditional healthcare system and offering to pay patients directly for their data. For patients, while this can offer appeal if one is sick or under tight budget constraints, it can also introduce risk as the data moves outside of the patient-provider relationship and is not covered by HIPAA. This potential access to data also provides huge potential upside for pharmaceutical manufacturers in specialty drug development, as they often need genomic data that is not otherwise given by providers. Read the full article here. WHY DOCTORS HATE THEIR COMPUTERS The New Yorker November 12, 2018 Further digitization within healthcare is expected to make medical care easier and more efficient for both patients and doctors. However, issues arise as the potential disconnect between patients and providers could be created through lack of face-time as a result of increased screen-time. Additionally, the increased time in training for doctors to get up to speed with the new platform may create additional inefficiencies. Patients, however, are able to better access their own medical information, creating increased transparency across both individuals and families. Read the full article here. MEET THE NEWEST HIMSS ANALYTICS ADOPTION MODEL: INFRAM Healthcare IT News October 25, 2018 After a wealth of hacking incidents over the past several years, companies have updated their IT systems and security across the organization. The Infrastructure Adoption Model (INFRAM) helps hospitals and health systems benchmark how their IT systems stack up with mobility, security, collaboration, transport, and data warehousing. This new system assists healthcare organization in securely implementing the infrastructure in which its EMRs are built upon, while leveraging its technologies for both clinical and operational efficiencies. Read the full article here.

TECHNOLOGY, MEDIA & TELECOM PAGE | 7 HEALTHCARE IT SECTOR REVIEW | Q4 2018

SELECT RECENT M&A TRANSACTIONS1 Enterpise Implied Implied Closed Date Target Acquirer Business Description Value EV/Revenue EV/EBITDA

Pending Connance Waystar (Bain Capital) Provider of healthcare revenue cycle software. * * *

12/14/2018 Consolo Services WellSky; TPG Capital Provider of web-based, hospice-specific software. * * *

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

12/03/2018 Aetna CVS Health Provider of healthcare benefit services. $70,000.0 1.1x 11.7x

12/03/2018 Parata Systems TCGRx; Frazier Healthcare Partners Provider of pharmacy technology services. * * *

11/30/2018 athenahealth, Inc. Veritas Capital; Evergreen Coast Capital Provider of cloud-based services 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 Provider of wellness and health engagement solutions. * * *

11/16/2018 MMIT Welsh, Carson, Anderson & Stowe Provider of market access and formulary information for pharma, payers, and providers. * * *

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

11/12/2018 Aramark Healthcare Technologies TriMedx Provider of biomedical and diagnositc imaging service solutions. $300.0 * *

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

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

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

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

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

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

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

10/11/2018 Apex Information Technologies RevSpring; GTCR Provider of revenue cycle management software to the healthcare industry. * * *

10/09/2018 Doctorbell Mobile Health Provider of patient engagement solutions offering instant medical advice. * * *

10/08/2018 COMS Interactive PointClickCare Technologies Provider of processes and systems for post-acute care facilities. * * *

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

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

TECHNOLOGY, MEDIA & TELECOM PAGE | 8 HEALTHCARE IT SECTOR REVIEW | Q4 2018

SELECT RECENT M&A TRANSACTIONS1 Enterpise Implied Implied Closed Date Target Acquirer Business Description Value EV/Revenue EV/EBITDA

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

08/27/2018 Cotiviti Holdings, Inc. Verscend Technologies Provider of payment accuracy and analytic-driven solutions. $4,732.0 6.4x 16.0x

08/20/2018 Kinapse Syneos Health Provider of end-to-end clinical and commercial services. * * *

08/14/2018 SRAXmd Halyard Capital Provider of healthcare and pharmaceutical digital advertising. $52.5 * *

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

06/25/2018 iManaged Solutions Netgain, Bluff Point Associates Provider of private cloud-based solutions for optometry field. * * *

06/22/2018 AcuStream Eir Partners, Revint Solutions Provider of web-based services for tracking patient revenue. * * *

06/21/2018 ProSpitalia GmbH Nordic Capital Provider of healthcare-spend management and clinical solutions. * * *

06/15/2018 A2U Accscient Provider of a range of healthcare solutions focused on better decision-making. * * *

06/13/2018 Caradigm Inspirata Provider of population health management solutions. * * *

06/12/2018 Shareable Forms Strategic Management Consultants Provider of clinical documentation and analytics solutions. * * *

06/12/2018 SHYFT Analytics Medidata Solutions Provider of data, analytic, and mobile solutions for the global life sciences industry. $195.0 * *

05/29/2018 HEALTHCAREfirst ResMed Provider of web-based home healthcare and hospice technologies. * * *

05/24/2018 ePatientFinder Elligo Health Research Provider of patient-centric technology designed to make clincial trials publicly accessible. * * *

05/21/2018 HealthGrid Allscripts Provider of a mobile patient engagement solution designed to connect patients with services. $110.0 * *

NovaQuest Capital Management, RTI 05/14/2018 Clinical Ink Provider of electronic source solutions for clinical research sites. * * * International

05/03/2018 VoicePort Prescribe Wellness Provider of interactive voice response patient engagement solutions. * * *

05/02/2018 Datix Ltd. TA Associates Management Provider of cloud-based patient safety software. * * *

05/01/2018 SCIO Health Analytics ExlService Holdings Provider of health analytic services centered around payment integrity and care management. $240.0 3.5x *

05/01/2018 Avizia American Well Provider of telehealth and remote conferencing solutions. $150.0 * *

04/30/2018 REACH Health InTouch Health Provider of telemedicine solutions designed to connect physicians and patients. * * *

04/30/2018 Universal Patient Key Datavant Provider of de-identification software solutions. * * *

TECHNOLOGY, MEDIA & TELECOM PAGE | 9 HEALTHCARE IT SECTOR REVIEW | Q4 2018

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS2 Round / Money Raised to Closed Date Target Lead Investor(s) Business Description Stage Raised Date

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

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

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

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

Late-Stage 12/04/2018 Lumeon Life Sciences Partners Prov ider of care pathway management solutions. $28.0 $43.0 VC

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

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

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

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

Late-Stage 11/27/2018 HNI Healthcare CRG Prov ider of technology-enabled physician practice management platform. $65.0 $130.0 VC

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

Late-Stage 11/19/2018 ClearData Humana; Merck Prov ider of security and compliance solutions in the healthcare cloud. $26.0 $80.4 VC

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

Late-Stage 11/13/2018 Adv antia Health Undisclosed Prov ider of an integrated healthcare deliv ery network. $12.5 $43.1 VC

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

Late-Stage 11/07/2018 Force Therapeutics Insight Venture Partners Prov ider of digital care deliv ery platform to streamline connections. $21.0 $25.8 VC

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

Late-Stage 10/30/2018 Think Research National Bank of Canada Prov ider of cloud-based healthcare platform. $25.0 $25.0 VC

TECHNOLOGY, MEDIA & TELECOM PAGE | 10 HEALTHCARE IT SECTOR REVIEW | Q4 2018

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS2 Round / Money Raised to Closed Date Target Lead Investor(s) Business Description Stage Raised Date

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

10/09/2018 Kyruus McKesson Ventures Prov ider of information exchange solution. C $14.0 $80.5

Late-Stage 10/09/2018 Kareo Undisclosed Prov ider of medical office software to help physicians get paid faster. $9.9 $148.4 VC

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

09/25/2018 Holmusk Heritas Capital Management Prov ider of digital health platform for patient engagement. A $9.8 $9.8

Late-Stage 09/21/2018 Good Methods Global Accel Prov ider of cloud-based care deliv ery and practice management serv ices. $16.0 $23.6 VC

09/19/2018 Vezeeta.com Saudi Technology Ventures Prov ider of an online doctor booking platform. C $12.0 $18.3

09/18/2018 Roman Health FirstMark Capital Prov ider of direct-to-consumer telehealth solutions. A $88.0 $91.1

09/10/2018 Clarify Health Solutions KKR Prov ider of real-time analytics and care guidance platform. B $57.0 $61.9

09/06/2018 Notable F-Prime Capital Partners Prov ider of v oice-powered healthcare platform. A $13.5 $16.5

Late-Stage 08/23/2018 Tempus Baillie Gifford Prov ider of a healthcare data analytics solution. $110.0 $320.0 VC

08/21/2018 Cricket Health Oak HC/FT Prov ider of technology-enabled products and serv ices to modernize kidney care deliv ery. A $24.2 $26.9

08/09/2018 Hinge Health Insight Venture Partners Prov ider of a digital healthcare platform for knee arthritis and lower back pains. B $26.0 $35.6

08/08/2018 Capsule (Pharmacy) Thriv e Capital Prov ider of digital platform to prov ide home deliv ery of prescription medication. B $50.0 $70.0

08/07/2018 AlayaCare iNov ia Capital Prov ider of cloud-based software for home care agencies. B $13.8 $22.2

Late-Stage 08/01/2018 MDLIVE Health Velocity Capital Prov ider of on-demand healthcare deliv ery serv ices and software. $50.0 $126.6 VC

08/01/2018 Ev idation Health SV Health Inv estors Prov ider of an application for real-world research for life sciences and healthcare companies. C $30.0 $61.2

08/01/2018 HealthMyne Ascension Ventures Prov ider of patient management platform. B $15.0 $26.0

07/31/2018 Medlinker China Capital Zhongcai Prov ider of a social networking platform connecting doctors with peers. D $149.1 $249.1

07/31/2018 Verana Health GV (formerly Google Ventures) Prov ider of a technology platform to coordidate patient care in real time. C $30.0 $38.8

TECHNOLOGY, MEDIA & TELECOM PAGE | 11 HEALTHCARE IT SECTOR REVIEW | Q4 2018

TO VIEW FULL MARKET MAP PLEASE CONTACT: REPRESENTATIVE PROVIDER, PAYER, AND CONSUMER TOOLS *[email protected]

Provider and Payer Tools

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

ROVIDER

AYER P

Consumer Tools

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

TECHNOLOGY, MEDIA & TELECOM PAGE | 12 HEALTHCARE IT SECTOR REVIEW | Q4 2018

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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.

Aerospace, Building Products Business Consumer Energy, Power Healthcare Industrials Specialty Technology, Transportation Defense & & Materials Services & Infrastructure & Life Sciences Industrials Distribution Media & Telecom & Logistics Government Services

HARRIS WILLIAMS OFFICE LOCATIONS

UNITED STATES EUROPE

Boston Richmond (Headquarters) Frankfurt One International Place 1001 Haxall Point Bockenheimer Landstrasse 33-35 Suite 2620 9th Floor 60325 Frankfurt Boston, Massachusetts 02110 Richmond, Virginia 23219 Germany Phone: +1 (617) 482-7501 Phone: +1 (804) 648-0072 Phone: +49 069 3650638 00

Cleveland San Francisco London 1900 East 9th Street 575 Market Street 63 Brook Street 20th Floor 31st Floor London W1K 4HS, England Cleveland, Ohio 44114 San Francisco, California 94105 Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (415) 288-4260

Minneapolis Washington, D.C. 222 South 9th Street 800 17th St. NW Suite 3350 2nd Floor NETWORK OFFICES Minneapolis, Minnesota 55402 Washington, D.C. 20006 Phone: +1 (612) 359-2700 Phone: +1 202-207-2300 Beijing New Delhi Hong Kong Shanghai Mumbai

TECHNOLOGY, MEDIA & TELECOM PAGE | 14 HEALTHCARE IT SECTOR REVIEW | Q4 2018

Sources

1. FACTSET .

2. PITCHBOOK .

Disclosures

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: [email protected]). 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.

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