2018 Healthcare Tech M&A Valuations are Increasing

Healthcare Tech M&A transaction activity has reached peak levels in the past few years.  After the top deal volume reported in 2016, we’re seeing a trend towards fewer transactions at higher valuations as we get started in 2018, however many analysts believe that deal volumes are going to increase again this year as well.


Source: 451 Research


  • TECHNOLOGY ACQUISITION: Disruptive technologies including AI, Machine Learning, IoT, and Blockchain are having a significant impact on Healthcare IT. This has triggered a wave of convergence as large organizations move to acquire companies that can fill these gaps. Technology acquisition is the new No. 1 driver of M&A in Healthcare IT, ahead of expanding customer bases in existing markets, or adding to products or services.
  • STRONG MARKET CONDITIONS: There is an unprecedented amount of cash available and more buyers competing for fewer good quality acquisition targets. This friction is extremely favourable for shareholders ready to explore their options. 


The current economic expansion began in mid-2009, making it the third longest in history – and it isn’t going to last forever. When it ends, we’ll see conditions similar to those after the last two market corrections in 2000 and 2008:

  • Deal volumes and values will decline as fewer companies pursue acquisitions. This will result in less competition, fewer good quality strategic buyers, and decreased valuations.
  • Organic growth will be hampered as confidence in the economy erodes and spending budgets are frozen

Timing is now very important whether considering a transaction or planning to stay for the longer term.

If you are contemplating options or would like to learn more about what we’re currently seeing in Healthcare Tech M&A, let’s have a call: https://www.timetrade.com/book/KZ9W2