In anticipation of increased mergers and acquisitions (M&A) in 2025, several healthcare startups are ready to explore growth opportunities. Despite a cautious approach from larger companies this year, startups with sufficient funding are poised to make strategic deals. This article outlines seven startups actively pursuing acquisitions to drive expansion in the coming year.
In the realm of healthcare acquisitions, 2025 may witness increased activity among startups despite a year of muted interest from larger enterprises. The current financial landscape is prompting startups to seek potential buyers among their peers once they have raised sufficient capital. Herein, we present seven healthcare startups that are preparing to engage in mergers and acquisitions in the upcoming year.
At the end of 2024, many startups in the healthcare sector were discreetly navigating down rounds while eyeing potential buyers to prolong their operations. Simultaneously, Business Insider reported that major corporations exhibit a lack of appetite for large acquisitions this year. “In digital health, it’s not necessarily that it doesn’t make sense to consolidate — it’s there’s a lack of consolidators out there,” commented Aaron DeGagne, a senior healthcare analyst at PitchBook.
Startups with strong financial backing are looking to capitalize on this opportunity, aiming to expand through acquisitions. Several companies are actively expressing their intentions to pursue M&A as interest rates are expected to decline, signaling a promising environment for inorganic growth in 2025.
Caresyntax: Founded in 2013, the surgical software company recently raised $180 million in August 2024 to pursue acquisitions. Caresyntax focuses on enhancing surgical safety and profitability through data integration. Their acquisitions may target surgical AI, video analytics, and data capture technologies.
Commure: Established in 2017, Commure has M&A as a foundational aspect of its strategy, having undergone seven acquisitions to date. The company recently completed a major merger with Athelas and acquired the care coordination platform Memora Health.
Datavant: Founded in 2017, Datavant has made several acquisitions since its $7 billion merger with Ciox Health. The firm is on the lookout for additional acquisitions, focusing on companies with healthcare technology relevant to providers and life sciences.
Hinge Health: Established in 2014, Hinge Health is considered a frontrunner for an IPO in 2025. The company is actively scouting for acquisition opportunities to bolster its operations ahead of going public.
Innovaccer: Since its founding in 2014, Innovaccer has been making strides in the healthcare technology sector. Following a recent $275 million Series F funding round, it has already made several acquisitions, aiming to further enhance patient experiences and alleviate administrative burdens.
Fabric: Founded in 2021, this early-stage startup has made four acquisitions since its debut. Fabric is keen to expand further through M&A, focusing on acquiring struggling firms and leveraging their assets.
Transcarent: Established in 2020, Transcarent has a history of strategic acquisitions, including a recent high-profile buy of Accolade. The company aims to smoothly integrate their acquisitions while exploring future growth opportunities.
The landscape for healthcare startups is on the verge of transformation as seven promising companies prepare for acquisitions in 2025. With significant financial backing and strategic intentions, these startups are leveraging the current market dynamics to pursue growth through mergers and acquisitions. Whether through enhancing technology, expanding service offerings, or integrating recently acquired entities, these companies position themselves strategically within the evolving healthcare ecosystem. As interest rates decline, a renewed wave of M&A activity could reshape the future of digital health.
Original Source: www.businessinsider.com
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