M&A deal volumes were healthy with 113 transactions seen. Private Equity kept on building up their portfolio companies and represented the buyer in approximately 35% of these deals.

Only 10% of transactions disclosed their deal values in the first three months of 2024 as buyers continued to guard the details and strategies behind their acquisitions. The median disclosed M&A value was $36 million.

During the first quarter of 2024, the Healthcare Ops subsector saw 54 deals followed by the Healthcare Data Management subsector at 14 deals and the Healthcare IT Services and EHR/EMR subsectors at 13 and 10 deals, respectively.

Venture capital funding for HealthTech firms continued to dry up in the first three months of 2024. The median VC funding size was $2.3 million during this period. As the median M&A deal size was over 15 times larger, sellers have been encouraged to pursue M&A strategies for growth and liquidity.

Strategic acquirer iCoreConnect was the most active in this space with four deals in the first quarter of 2024, followed by Innovaccer and Veradigm with 2 deals each. The only PE firm that made it to the top buyer list was Aquiline Capital Partners, with 2 deals through the first three months of 2024.