Callum Turcan, Research Analyst and M&A Writer - Corum Group
The exciting Healthtech market is attracting a ton of interest from companies large and small across the globe. So, what does M&A activity look like mid-year 2025?
M&A activity in the Healthtech sector is healthy, with 277 deals tracked during the first half of 2025 and on pace to exceed 2024 levels. Strong deal flows let sellers know that when they go to market there is an expansive buyer universe out there interested in HealthTech companies.
What is behind this momentum?
If we combine healthcare spending in EU member countries, the UK and the US, that adds up to over $7 trillion annually. Demographic trends show that the cohort aged 65 and older is growing in these markets, so healthcare expenditures are expected to remain strong.
Healthtech companies are developing innovative solutions that improve patient outcomes and generate substantial administrative efficiencies for healthcare providers by streamlining workflows. The healthcare industry is massive and plays an essential role in every economy. And right now, six trends are fueling the M&A activity in this sector: AI, digital health solutions, telemedicine platforms, analytics, preventive care and market consolidation.
Let’s take a closer look.
Starting with our first trend, AI. AI is improving healthcare in a variety of ways, from data analytics, task automation and personalization of patient treatment to improving efficiency, enabling enhanced diagnostics and automating tasks. Some examples of AI being implemented in the sector include improving the analysis of medical scans and the detection of anomalies. Highlighting this trend, Pixyl, a developer of AI-powered brain MRI analysis offerings cleared by the FDA, was picked up by Gleamer in March to offer radiologists tools that enhance diagnostic accuracy and accelerate patient care.
Now, to our second trend, digital health solutions. Not everyone lives near a hospital or medical clinic but everyone needs healthcare services at some point, making it essential that high-quality healthcare services can be delivered anywhere in the world at any time. Digital solutions span a variety of solutions from platforms, wearables, telehealth and apps. Illustrating this trend, RealizedCare, a digital therapeutics company, was acquired by XRHealth in February to add new scientifically proven methods to manage behavioral health conditions and chronic pain.
Pivoting to our third trend, telemedicine platforms. The healthcare industry has adopted videoconferencing technology to enable doctors, nurses and other professionals to conveniently meet their patients at a time and place of their choosing. Some benefits of this include making scheduling activities easier and optimizing time management for healthcare providers and patients. Showcasing this trend, KonsultaMD, a telehealth platform, was sold from the Ayala Group to mWell in February to strengthen its healthcare network by connecting additional patients to its system of hospitals and medical providers.
Analytics is our fourth trend. Healthcare providers are constantly looking for trends to improve patient outcomes by locating the best way to treat and manage medical conditions by learning from what worked and what didn’t work in the past. The entire healthcare industry is sitting on vast troves of data that can be unwieldly without high-powered tools to make sense of the insights hidden in that information. Highlighting this trend, Humbi AI, a specialist in healthcare actuarial software, services and analytics, was bought by Innovaccer in January to help healthcare organizations optimize drug commercialization and create intelligent value-based contracts.
Our fifth trend is preventative care. Encouraging healthier lifestyles can prevent medical conditions from occurring, and in instances where lifestyle changes alone can’t prevent medical conditions from arising, identifying health concerns earlier can lead to more positive outcomes. Illustrating this trend, Discover Momenta, a provider of digital and in-person healthy lifestyle programs, including diabetes prevention offerings, was pocketed by Liva Healthcare in February to help patients prevent and manage chronic health conditions.
Here, we’ll conclude with a powerful trend and a note of caution. Our sixth trend is market consolidation. Buyers located across the globe are deploying enormous sums to scoop up smaller rivals that strengthen their position in the vast and growing healthcare sector. Companies of all sizes must prepare for rising competitive threats as larger rivals leverage M&A to expand their reach, gain access to a larger patient pool and increase their network of healthcare providers. Showcasing this trend, NotiSphere, a provider of medical inventory recall notice tracking services, was picked up by PAR Excellence Systems in January to automate inventory management for healthcare companies.
The bottom line? Companies that map to any of these six trends are seeing incredibly robust demand from acquirers worldwide.
Everyone needs to be aware of how AI is impacting the Healthtech sector so here is a quick spotlight on how AI is being implemented in the space. To enhance patient care, companies are utilizing AI to develop personalized treatment plans tailored to the unique needs of each patient, thereby improving their outcomes. On the business side, AI is being leveraged to streamline administrative activities by automating various tasks and for quicker and more accurate diagnostics.