Healthtech M&A deal volumes were robust for the first half of 2024, with 217 transactions seen. Private Equity kept on building up their portfolio companies and represented the buyer in approximately 34% of these deals.

Only 9% of transactions disclosed their deal values in the first half of the year as buyers continued to guard the details and strategies behind their acquisitions. The median disclosed M&A transaction value was $18M.

During the first six months of 2024, the Healthcare Ops subsector saw 98 deals followed by the Healthcare IT Services subsector at 25 deals and the Healthcare Data Management and Telehealth subsectors at 23 and 20 deals, respectively. Furthermore, 53% of sellers had SaaS business models and at least 21% were developing deep tech, AI technologies.

Venture capital funding for HealthTech firms continued to dry up in the first half of 2024. The median VC funding size was $3.8 million during this period. As the median M&A deal size was almost 5 times larger, sellers have been encouraged to consider M&A strategies for growth and liquidity.

Strategic acquirer iCoreConnect was the most active in this space with 3 deals in the first half of 2024 followed by a number of other strategics including Clario, Innovaccer,  Veradigm, HellwellAI and Doctolib with 2 deals each. The 3 PE firms that made it to the top buyers list were Aquiline Capital Partners, Arsenal Capital Partners and Beedie Capital with 2 deals each. Buy-and-hold firm Valsoft made 2 deals in the first six months of the year as well.