Health and tech consolidate in the UK & Ireland

With uncertainty and political change creating market volatility, health is one arena that tends to remain stable, especially when backed by government investment. In Europe, EBITDA and revenue multiples paid to private healthcare companies from 2022-25 remain strong, in particular for non-essential healthcare companies providing medical devices and plastic surgery.

The global health tech market is undergoing consolidation as investors and corporate buyers target software companies that provide integrated, scalable platforms for the digitization of the National Health Service (NHS). The focus is on administrative automation, patient engagement, and integrated care solutions, driven by an increase in NHS spending on technology and digital productivity improvements, with over £2 billion allocated to digital initiatives in the October 2024 budget.

The surge of healthtech startups between 2018 and 2022 are now consolidating, with proven technologies emerging. However, to benefit from government spending, companies must show the ability to scale within the NHS systems. Single platforms with broad functionality are preferred, creating an opportunity for small companies to join and build a comprehensive offering.

Cera Care, an AI-driven mobile app with the goal of enhancing healthcare delivery through homecare and consultations, acquired CRG Homecare and Allied Health Care from Twenty20 Capital in 2021. In 2024-5 the company raised a further $150 million in a mix of debt and equity. Focusing on the UK and Germany, the company intends to grow through contracts and acquisitions, including an ongoing NHS contract.

In January 2025, MIS Healthcare, a leading medical imaging distributor, merged with Xiel Lits, a specialist in nuclear medicine, radiotherapy and diagnostic radiology solutions. The combined company will provide a broader range of innovative solutions for customers across the UK and Ireland.

Also in January 2025, Sword Health, an AI-driven digital musculoskeletal care provider acquired Surgery Hero, a digital health company specializing in prehabilitation services to help patients prepare for and recover from surgery to expand AI-enabled care models across the UK health system and support 18 NHS trusts to reduce pressure on the health system through efficient use of technology.

Liva Healthcare acquired Momenta in February 2025. Liva Healthcare’s digital health technology platform focuses on lifestyle-related chronic disease and consolidates its position by buying Momenta, a digital and in-person service provider with contracts with the UK’s NHS and local authorities for prevention of chronic conditions like Type 2 diabetes.

In Ireland, life sciences and healthcare assets remain desirable, particularly pharma and digital health. Multinational pharmaceutical, biotech, and medtech companies are consolidating their European operations, with 19 deals in 2024. According to EY, when excluding the mega-deal of Amryt Pharma’s sale in 2023, the 2024 M&A value is up by 76% year on year in Ireland.

Investindustrial has agreed to acquire DCC’s Healthcare division for £1.05 billion, with the deal anticipated to close in the third quarter of 2025, consolidating healthcare services with technology-enabled solutions. 

In the UK and Ireland, the NHS and a desire to improve efficiency in all aspects of healthcare, including administration, using integrated and proven AI systems, will continue to shape the M&A landscape.