M&A at All Time Highs - MedTech Leads the Way

Issue 24 - Global Finance and Applied DeepTech Make History in 2021

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M&A at All Time Highs - MedTech Leads the Way

Consolidation is happening across sectors thanks to several major global macro themes

Global M&A activity has continued its record-setting pace, with just over 27,000 deals completed for a combined $3.4 trillion through the first three quarters of 2021. The economic recovery coming out of the COVID-19 pandemic is fueling unprecedented M&A activity. Business travel is beginning to reemerge and many of the largest economies are adapting to the new normal brought on by the pandemic. Additionally, the key drivers of all this M&A remain intact, meaning the current trend is likely to persist for several additional quarters, barring a new coronavirus variant shutting down global economies. [Source PitchBook]

Major contributors include:

  • Low cost of capital from ongoing fiscal stimulus and favorable monetary policies
  • High equity valuations for most technology oriented business
  • Winner take all mentality / single point of delivery (Walmart / Amazon mentality)

MedTech in particular is rapidly consolidating. Case in point, Best Buy recently announced that it is acquiring United Kingdom-based at-home care platform Current Health expanding its push into the health industry. (Link: Best Buy to acquire Current Health to help make home the center of health)

“The future of consumer technology is directly connected to the future of healthcare,” said Deborah Di Sanzo, President of Best Buy Health. “We have the distinct expertise in helping customers make technology work for them directly in their homes and by combining Current Health’s remote care management platform with our existing health products and services, we can create a holistic care ecosystem that shows up for someone across all of their healthcare needs.”

Other Major Themes:

Telemedicine utilization / Vertical specialization

Telemedicine utilization has scaled and has become a new standard for care delivery. As telemedicine infrastructure becomes commoditized, specialty-focused virtual care has evolved with the help of specialty-specific remote monitoring, at-home diagnostics, pharmacy, and labs capabilities. Hybrid care is increasingly the goal for facilitating the best of virtual and in-person visits.

Vertically-focused virtual care delivery platforms in top areas of chronic disease spend (e.g. diabetes, musculoskeletal disease, and mental health), have supported multiple outsized outcomes. For example,

  • Livongo Health, which was acquired by Teladoc, now has a market cap of $14.19B [Source]
  • The mental health space has gained increasing adoption with Talkspace valued at $.56B [Source]


With COVID-19 testing reshaping the diagnostic sector, Agilent, DiaSorin, Hologic, Invitae, LabCorp, NeoGenomics, PacBio, PerkinElmer, Roche and Thermo Fisher have all been acquisitive.

  • Roche bought GenMark Diagnostics ($1.8B), a provider of technology for testing a range of pathogens from a single sample.
  • DiaSorin paid $1.8 billion deal to buy Luminex to grow its multiplex molecular testing business.


The most active area of dealmaking so far.

  • Agilent did a $550 million buyout of Resolution Bioscience and NeoGenomics
  • Pacific Biosciences paid $600 million upfront to buy Omniome for short-read sequencing capabilities. The acquired assets will support PacBio’s alliance with Invitae, which bolstered its recent push into personalized cancer monitoring by picking up Genosity for $200 million.
  • Hologic, one of the most active dealmakers of 2021, bought molecular cancer test developer Biotheranostics for $230 million, before going on to expand in acute care testing by acquiring Mobidiag for $795 million.

Connected Care / Wearables

Cardiac wearables and the broader connected care space.

  • Philips acquired BioTelemetry for $2.8B. Then weeks later, Boston Scientific paid $925 million move for Preventice.
  • Baxter’s $10.5 billion buyout of Hillrom was an attempt to expand in connected care, enabling it to capitalize on the digitalization of hospitals and the move of more care to home settings. The move of care to the home began before the pandemic but was accelerated by COVID-19, increasing interest in cardiac wearables and the broader remote monitoring sector.
  • Stryker completed its $4 billion takeover of Wright Medical and acquired sensor developer OrthoSensor. The takeover gave Stryker control of products including remote patient monitoring wearables.

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