UK Healthcare M&A remains robust throughout Q1 as deals continue to flow in 2025

UK Healthcare M&A remains robust throughout Q1 as deals continue to flow in 2025

Pharma and life sciences and healthcare IT saw a notable uptick in volumes in March.

The UK Healthcare M&A sector has remained on par with 2024 deal levels, with 59 deals completed in Q1 of 2025 - 17 in January, 17 in February, and 25 in March.

According to a report from Heligan Group, health and social care remained the most active sector in Q1, accounting for 48% of total deal volume in March, driven by several lower-value transactions in the care home space. Activity in pharma and life sciences also increased in March, representing 28% of deal volume, from 2 deals in February to 7, with oncology deals being a significant proportion of this sub-sector. 

Health and Social Care deals dominated the UK healthcare deal flow in March, in line with expectations. This included Eden Futures' acquisition of Care Wish, BGF's investment in OCL Vision, M&D Green Pharmacy Group's acquisition of Nine Gordons Chemists stores and UK-based Pebbles Care acquiring Nurture Childcare Services.

Pharma and life science deals gained traction, increasing from 2 deals in February to 7 in March. The majority of which were strategic acquisitions, including Swedencare's acquisition of Summit Veterinary Pharmaceuticals for £44.8m and Surface Technologies' acquisition of Accentus Medical. 

Evaluating the analysis, Ramesh Jassal, Partner at Heligan Group, said: “UK Health M&A saw a steady stream of deal activity in Q1 of 2025. Strategic buyers accounted for 92% of transactions in March alone, demonstrating that trade deals are dominating and that Private Equity will focus on consolidating sectors through bolt-ons. 

“Outbound healthcare deals made up 12% of total deals in March, while inbound deals increased from 23% in February to 32%, highlighting sustained international interest in UK healthcare assets. However, the recent US tariffs introduce uncertainties that could influence future M&A activity, warranting close observation in the coming months. Financial investors appear to be consolidating the market, with fewer standalone new platform investments.

“Towards the end of Q1, we saw a significant uptick in the number of pharmaceutical deals, particularly in the oncology subsector, with pharmaceutical M&A activity set to increase as borrowing constraints are relaxed”, added Jassal. “Healthcare providers are increasingly adopting technologies such as remote monitoring, virtual consultations, and AI-driven triage systems to address growing patient demand and workforce challenges. These innovations are particularly focused on mental health, chronic condition management, and resource-efficient staffing, reflecting the evolving needs of modern healthcare systems. Prominent deals in this sector include Northumbria Healthcare NHS Foundation Trust's acquisition of Health Call Solutions.

“As we navigate 2025, weaker UK currency and recent US tariffs may enhance the appeal of UK healthcare assets to foreign buyers, potentially positioning the UK as a strategic gateway to the U.S. market. However, the effectiveness of this opportunity depends on the evolving nature of U.S. trade policies and their impact on global supply chains.

“Looking ahead, I expect the next wave of healthcare transformation to focus on predictive care, interoperability, and embedded AI, driven by the need for seamlessly integrated platforms that deliver real-time insights and meet rising patient expectations for convenience, personalisation and outcome-based care. I anticipate investment to flow heavily into mental health, workforce technology, and preventative diagnostics as the system shifts from treatment-focused to long-term wellbeing management,” concluded Jassal.

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