Healthtech deal volume continues to rise significantly, while buyer caution keeps valuations at moderate levels

The newest Healthtech M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies, reveals that 242 deals were made in 1H25 – the largest number recorded in a half-year reporting period within the sector.

This resurgence in momentum following a temporary dealmaking slowdown in late 2023 and early 2024 can be attributed to several key factors. These include the easing of macroeconomic headwinds, the ongoing digitalisation of global health systems fuelling demand for cloud-based solutions, and the recognition of how  innovations in AI can bring unprecedented efficiencies in numerous use cases, from drug discovery to patient data analytics. The latter is a major disruptive factor, with over 60% of Healthtech funding in Q1 alone going to AI startups. 

The report also reveals that the rise in deal numbers has been accompanied by a decline in valuation multiples, with the median EV/R falling from 2.7x in 2H24 to 2.3x in the first half of this year. This is a notable drop from the peak of 3.7x seen in the second half of 2023, reflecting the fact that buyers are more pragmatic and cautious in their assessments of potential acquisition targets.

Commenting on this trend, Tom Schmähling, Managing Director and Head of the Healthtech practice at Hampleton Partners, said: “The recalibration of market dynamics following the pandemic-era investment surge has exposed structural vulnerabilities in overfunded startups, some of which are now facing distressed exits as capital efficiency and sustainable growth regain priority. Concerns around regulatory pressures in the healthcare industry, plus the mentioned shift in acquirer focus towards targets with proven profitability rather than growth potential, have also exerted a downward pressure on valuations. It remains to be seen how long Healthtech remains a buyer’s market.” 

Over the past 30 months, the top three most prolific Healthtech buyers have been:

Harris – 7 acquisitions, including WigaSoft (healthcare operations management software), Pacific Medical Management Services (outsourced medical RCM services), and MEDHOST (EHR management software)

Aya Healthcare – 5 acquisitions, including Locum’s Nest (healthcare workforce management software), ID Medical Group (healthcare staffing services), and Flexwise Health (healthcare forecasting SaaS)

HealthCatalyst – 5 acquisitions, including Upfront Healthcare Services  (healthcare patient communication & engagement), Carevive Systems (cancer care management software), and Intraprise Health (healthcare cybersecurity risk management software)

Download the full Hampleton Partners Healthtech M&A Market Report 2H2025, which explores key industry trends and acquisition case studies within the main subsectors: EHR & Information Management, Health IT Services & BPO, Healthcare Vertical Software, and Online Health Services.

Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com); Capital IQ, CB Insights, Gartner, IDC and more.

Hampleton Partners advises owners of software and technology companies on M&A transactions and growth financing with strategic buyers or financial investors. Hampleton’s experienced deal makers have advised hundreds of tech industry shareholders to date, providing hands-on expertise and targeted advice to entrepreneurs looking to sell, partially retire, or accelerate their growth.

With hubs in London, Frankfurt, Stockholm, San Francisco and Shanghai, Hampleton offers a global perspective with industry expertise in the following areas: Enterprise Software, Digital Commerce, IT & Business Services, Artificial Intelligence, Autotech & Mobility, Cybersecurity, Fintech, Healthtech, Supply Chain Management, Healthtech, HR Tech, and Insurtech. 

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