Digital health gold rush: How MedTech acquisitions are reshaping ANZ healthcare

According to our FY25 ANZ Deal Indicators Report, Australia recorded a 24% increase in new healthcare deals compared to FY24, establishing the sector as a consistent performer in the broader deals space. This growth reflects sustained institutional confidence and strategic positioning by healthcare companies seeking to expand capabilities and market presence.

New Zealand's healthcare sector painted a more volatile picture, experiencing 400% growth in quarterly deal volume despite a 25% decline in year-over-year activity and an overall 20% increase for FY25. This quarterly volatility suggests a market characterised by concentrated deal activity and opportunistic transactions rather than steady, sustained growth.

Thomas Watson, Partner M&A Advisory at Deloitte NZ said: “Throughout FY25, our Deloitte M&A Advisory team in New Zealand has observed robust activity in the healthcare and energy transition/ sustainability sectors.” 

“However, deal completion has been slower, with a notable increase in bilateral transactions. We anticipate these trends will continue into FY26, supported anecdotally by our strong pipeline of deals in these sectors that we expect to bring to market in late 2025 and early 2026,” he adds. 

The contrasting patterns highlight differences in market maturity, with Australia's healthcare M&A reflecting systematic sector consolidation while New Zealand's activity appears more episodic and opportunity-driven.  

Strategic acquisition themes: Technology and capability enhancement

Both markets demonstrated clear strategic focus on expanding capabilities in medical technology, biomedicine, and integrated care delivery. Australian healthcare M&A was driven by strategic acquisitions aimed at strengthening positions in medical and analytical systems, biomedicine and genetics, and outpatient care services.

The trend towards medical technology investment was exemplified by Affinity Equity Partners' $965 million acquisition of Lumus Imaging, highlighting growing demand for advanced diagnostic and imaging technologies. This transaction represents the type of substantial healthcare infrastructure investment that characterises Australia's mature healthcare M&A market, where established private equity players pursue scaled, technology-enabled platforms.

Investment in biomedical innovation also featured prominently, with Amicus Therapeutics' pending $590 million acquisition of Dimerix showcasing investor appetite for innovative biomedical solutions. This transaction reflects the premium valuations being accorded to companies developing novel therapeutic approaches, particularly in areas addressing unmet medical needs.

New Zealand's volatile patterns: Opportunity and timing 

New Zealand's healthcare sector volatility – with 400% quarterly growth juxtaposed against declining annual activity – suggests a market where transactions cluster around specific opportunities rather than following systematic consolidation patterns. This episodic nature may reflect the smaller scale of New Zealand's healthcare market, where fewer but potentially larger transactions can significantly impact sector statistics.

The 33% increase in New Zealand information technology deals, combined with healthcare sector activity, points to healthcare technology convergence as a particular area of focus. This suggests that New Zealand healthcare M&A may be particularly concentrated in technology-enabled healthcare services and digital health solutions.

Market drivers: Demographics and technology

Both markets are benefiting from powerful demographic tailwinds that support healthcare sector investment. Australia's aging population and increasing prevalence of chronic diseases create sustained demand for healthcare innovation and service delivery, supporting premium valuations for companies addressing these demographic trends.

The combination of healthcare and technology represents a critical investment driver across both markets. Traditional healthcare companies are actively acquiring technology platforms to enhance service delivery, improve patient outcomes, and develop data analytics capabilities that can drive operational efficiency and clinical effectiveness. 

Digital transformation acceleration, permanently altered by COVID-19 pandemic experiences, has created lasting demand for telemedicine, remote monitoring, and integrated digital health solutions. This transformation provides sustained momentum for healthcare M&A activity as companies pursue technological capabilities to meet evolved patient expectations. 

Regulatory hurdles: Reshaping deal timelines

Both Australian and New Zealand healthcare M&A must navigate increasingly sophisticated regulatory environments, with competition authorities paying particular attention to healthcare sector consolidation that could impact patient access or pricing. The Australian Competition and Consumer Commission's more rigorous merger approval regime, effective throughout FY25, has added complexity to healthcare transaction timelines. 

Healthcare acquirers must demonstrate that proposed transactions enhance rather than restrict patient access to services, requiring sophisticated regulatory strategies that balance consolidation benefits with competitive market maintenance.

Investment landscape: Private equity and strategic buyer activity 

The healthcare sector continues attracting significant private equity investment, reflecting the sector's defensive characteristics, predictable cash flows, and growth prospects. Private equity participation in Australian healthcare M&A, demonstrated by transactions like Affinity Equity Partners' Lumus Imaging acquisition, shows continued appetite for healthcare services and technology platforms.

Strategic buyers remain active across both markets, pursuing acquisitions that enhance therapeutic capabilities, expand geographic reach, and integrate new technologies into existing healthcare delivery platforms.

Looking forward: Sustained growth fundamentals 

The outlook for healthcare M&A across Australia and New Zealand remains fundamentally positive, supported by demographic trends, technological advancement, and ongoing need for healthcare infrastructure investment. Australia's steady 24% growth trajectory suggests a mature market with systematic consolidation opportunities, while New Zealand's volatility may present opportunistic investment scenarios for discerning buyers.

Success in both markets will require deep sector expertise, sophisticated regulatory navigation capabilities, and the ability to identify targets that align with long-term strategic objectives while offering near-term value creation opportunities.