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Tuesday, 3 February 2026 |
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| The past week saw a flurry of health tech acquisitions (we counted at least five!). |
| Part of the rush of activity is seasonal — the end of the year often serves as a deadline, and starts the next with some buzz. But it’s also part of a broader upswing in health tech M&A, in which companies have been increasingly eager to buy and sell. |
| According to Rock Health, the 195 digital health M&A deals in 2025 marked a 61% increase from the year before. A number of companies managed to raise large rounds of funding over the past few years, heightening their investors’ expectations for growth, Rock Health Advisory CEO Megan Zweig told me. That urgency has been intensified by the rush to build AI and win contracts, as insurers and hospitals shop around for new technology. Plus, buyers are looking for companies that can offer multiple services at once. |
| “When you have the cash, and you're looking to build out those new capabilities, buying can be faster than building,” Zweig said. “All the factors are coming together right now to make this a time when M&A is going to keep moving forward at a pretty fast pace.” |
| Companies are also more eager to sell than ever. For years, consolidation in health tech has been expected, but it’s never fully played out because companies have refused to sell below their lofty pandemic-era valuations, Megan Scheffel, SVB’s head of life science and healthcare, told me. |
| But after struggling to raise fresh capital, and valuations that don’t seem likely to rebound anytime soon, more are willing to accept offers, often under pressure from investors. |
| "People aren't willing to pay for companies that have huge burn rates," Scheffel said. "I think there's some of that 'I have no choice.'" |
| - Ngai |
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Price check |
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11 |
The percentage that prices increased after UnitedHealth Group’s Optum — a prolific buyer of clinics and other healthcare facilities — acquired ambulatory surgery centers, according to a new study in Health Affairs. The study was based on commercial claims data for seven procedures at two dozen surgery centers Optum acquired in 2017. Researchers estimated that the price increase translated to $10.1 million annually. |
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Worldwide made. Thanks for reading.
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