UnitedHealth Group Continues Insurer-Pharmacy Merger Trend with Acquisition of Genoa Healthcare

​Last week, there were 38 M&A deals, comprising over $23.26 billion of capital invested, according to data from Pitchbook. Business-to-business companies led activity with 11 deals, totaling $4.3 billion, while financial services firms were responsible for the most capital invested at $6.88 billion. The following are notable transactions from the week: 

• Conduent, a developer of digital platforms to streamline processes for businesses and municipal governments, is set to sell its government software solutions unit to Avenu’s Government Revenue Solutions. The government-facing software allows municipalities to maintain vital records and manage courthouse and juror functions, along with offering tax collection, pension administration, and property assessment services. The sale will allow Conduent to focus on its core businesses and assets. Terms of the deal were not disclosed.

• Skyworks Solutions (NAS: SWKS) will pay $405 million to acquire Oregon-based Avnera. Avnera is a developer of analog system-on-chip (ASoC) technologies designed for consumer audio companies such as Sony and JBL. The technology is used to combine analog circuits for audio signal processing. Skyworks plans to use Avnera’s ASoC technology for smart speakers, digital assistants, gaming controllers, and driver controls inside vehicles.

• Omaha, Nebraska-based Valmont Industries (NYS: VMI) has acquired control of overhead sign-maker Walpar. Valmont is a global provider of products and services for infrastructure development and agricultural irrigation services. Walpar, who designs and manufactures complex overhead sign structures including truss, cantilever, and gantry structures primarily for highway applications, will help Valmont expand its portfolio of highway infrastructure products. Terms of the deal were not disclosed.

• Health insurance provider UnitedHealth Group (NYS: UNH) has a tentative deal in place to acquire pharmacy operator Genoa Healthcare from private-equity firm Advent International. UnitedHealth is seeking full control of Genoa and its 400 full-service pharmacy locations inside mental health facilities. The deal is an extension of the ongoing pharmacy-health insurer merger trend, likely a result of Amazons campaign into the healthcare industry.

• For $690 million, Stanley Black & Decker (NYS: SWK) will acquire KPS Capital Partner’s International Equipment Solutions (IES) division. The deal includes the division’s Paladin, Genesis, and Pengo units and brands. IES is a manufacturer of heavy-equipment attachment tools for off-highway applications, serving the industrial, construction, agriculture, infrastructure, recycling, demolition, and mining industries. The company’s products include dump buckets, backhoes, augers, and concrete breakers.