Healthtech M&A deal volumes were robust with 157 transactions seen. Private Equity represented the buyer in approximately 29% of these deals as demand for HealthTech firms was strong from strategic and financial buyers. 

In the first quarter of 2025, the Healthcare Ops subsector saw 58 deals, representing 37% of the total. That subsector was followed by Telehealth with 27 deals, Healthcare Data Management with 21 transactions and Healthcare IT Services with 19 deals. Interestingly, 62% of sellers had SaaS business models and at least 15% were developing deep tech, such as AI technologies.

The disclosed transaction value reached $7.3B during the first three months of 2025. Only 10% of transactions disclosed their deal values as buyers continued to guard the details and strategies behind their acquisition strategies. The median disclosed M&A transaction value was $39M.

After peaking in 2021, venture capital funding for HealthTech firms continued to dry up throughout the first quarter of 2025. The median VC funding size was $4M during this period. As the median M&A deal size was nearly 10 times larger, sellers have instead been encouraged to consider M&A strategies for growth and liquidity.

The top acquirers during the first three months of 2025 were all strategics including WELL Health, Relias, PAR Excellence, Myant, Treatment AI, Aline, Gleamer and Knack RCM. Each company made two deals in the HealthTech sector in the first quarter of 2025.