Healthcare dealmaking is picking up momentum. In fact, it’s helping drive the broader rebound in M&A and private equity activity in the first quarter this year. With an influx of capital, advancing technology, and a shifting regulatory landscape, healthcare transactions are not only increasing in number—they’re also becoming more strategic.
A Look at the Numbers
New healthcare and life sciences deals on Datasite, which supports around 19,000 new deals annually, rose 8% globally in the first three months of this year. Since Datasite captures deals at the start of their lifecycle, this early data offers a valuable glimpse of what’s ahead for the rest of the year. What’s clear: the sector is primed for more movement.
What’s Driving the Surge
Several forces are converging to fuel the upswing. AI continues to disrupt how care is delivered and how businesses operate. A more accommodating regulatory tone under the US Trump administration is giving dealmakers greater confidence. There’s also a substantial amount of dry powder waiting to be deployed, and many companies that paused transactions last year are now returning to the table.
Private equity firms are especially active. They’re pursuing acquisitions to capture more market share, exit mature investments, and reposition for growth. Healthcare software and services remain resilient—and increasingly attractive—despite broader macroeconomic uncertainty.
Tech Is at the Center
Healthcare organizations are still under pressure to reduce costs while improving outcomes. Many are addressing this by acquiring AI-enabled platforms, smart devices, and digital services. These technologies can support value-based care, address labor shortages, and streamline operations. Deals that deliver innovation and scale are also rising to the top.
Complex Deals Require Better Tools
At the same time, dealmaking is growing more complicated. Changing reimbursement policies, ongoing trade disputes, and shifting government priorities have added new layers of uncertainty. That’s extending due diligence timelines. Hold rates on Datasite for the first three months are up by three-points compared to last year. Deal teams are slowing down, scrutinizing risks, and getting more selective.
AI is helping here, too. Dealmakers are using generative AI to identify targets, speed up due diligence, and run predictive models. One in five is already using it in some part of the M&A process. This adoption is expected to grow, as companies look for ways to boost accuracy and efficiency.
What to Expect for the Rest of 2025
More deals are coming. Private equity-backed exits will continue, particularly in healthcare IT and software. Strategic buyers will keep looking for assets that strengthen core capabilities or expand their reach. Expect competitive bidding in high-growth areas, especially where AI and automation can help cut costs or improve care delivery.
But challenges remain. Capital isn’t as cheap as it once was. Political and economic signals are still mixed. And regulatory oversight will likely evolve. That means success depends on preparation.
The Bottom Line
Healthcare dealmaking is not just back—it’s accelerating with purpose. The rest of 2025 will reward leaders who move decisively, invest wisely, and adapt quickly. M&A remains one of the most powerful tools to reshape healthcare, and right now, the opportunity is real.
Mark Williams
Mark Williams is Chief Revenue Officer at Datasite.
