After the high in deal value in the last half of 2015 and the high in the number of deals in the first half of 2016, we have been seeing a slight decline in deals in the healthtech space, but that doesn’t mean that the space is disappearing. There will be a rise in the number of healthtech deals we see as new companies become mature enough to be acquired or merged with other companies. The wave-like trend of deals in this sector is fueled by the current needs and wants of companies in the sector.
When you’re looking at the current top buyers in the space, you’ll notice that there are a lot of non-healthtech companies. A number of our top buyers on this list are PEs that are purchasing healthtech companies to do bolt-ons and acquire particular platforms. But there are some healthtech companies on the list and some general tech companies that are acquiring solutions for the healthtech platforms that they might be interested in working with.
With the shrinking number of deals that we have currently been seeing in the healthtech sector, this also means that the deal size has been getting a little bit slimmer. In 2015 and 2016, we saw deals getting up to the $250M-$1B range, but in 2017, the number of deals in that range was significantly lower than in years before.