UK healthcare M&A maintains momentum in H1 2025 with deal volumes holding steady

Strategic and private equity buyers continue to have strong interest in UK healthcare assets through H1, despite ongoing global geopolitical volatility.

UK healthcare M&A has continued to gain traction with 134 deals in H1 2025. Health and Social Care and Healthcare IT accounted for 74% of total deal volume, up from 51% in H1 2024, according to the latest UK healthcare M&A report from Heligan Group. 

Pharma and life science deal volumes declined in H1 2025, falling to 24% of total activity compared to 29% in H1 2024. This was due to regulatory uncertainty in the US following changes at the FDA, NIH, and CDC and broader political and economic headwinds.

Medical equipment and device deals accounted for 11% of total H1 2025 deal volumes, compared to 20% of H1 2024 deal volumes. Overall, 47% of inbound deal volume was in the pharmaceutical and life science sub-sector, reiterating the UK’s safe haven status.

Ramesh Jassal, Partner, Corporate Finance, Healthcare at Heligan Group said, “H1 2025 continues to be a buyers’ market, and there were 134 deals in the UK healthcare space, which is broadly in line with the 130 deals seen in H1 2024. Given the retrospective addition of deals, it is likely that the number of deals in H1 2025 was higher, highlighting the positive sentiment that markets have for 2025.

“I anticipate continued resilience in deal activity in H2 2025, with strategic buyers investing and private equity backing bolt-ons while remaining selective on platforms. Interest in UK healthcare assets remains steady despite global geopolitical uncertainty, highlighting the relative stability and attractiveness of the market.”

In H1 2025, 84% of M&A deals involved strategic buyers, aligning with the view that Private Equity is focusing on bolt-on acquisitions rather than adding new platforms to their portfolios. In line with 2024, H1 2025 saw that the UK’s greatest outbound investment in terms of deal volume is the US, with the US continuing to be the biggest investor in the UK. In H1 2025, 57% of deals were internal, with inbound M&A (24%) outpacing outbound (19%).

“Health and Social Care deals made up 16% of outbound transactions, a slight decline, while domestic H&SC activity rose to 70%”, added Jassal. “This suggests a growing focus on UK-based opportunities amid global uncertainty. Outbound deal volume decreased to 19%, whilst internal deal volume increased to 57%, highlighting that UK buyers prefer internal assets amidst an unstable global political environment.

“North America remains the number one investor in the UK, and the UK continues to invest strongly in the US. I foresee this trend continuing, due to preferential tariff treatment between the US and UK versus Europe. Trade buyers dominate the landscape, accounting for 84% of deals, while private equity remains focused on bolt-on acquisitions.

“Many international deals completed in H1 2025 were based on assumptions and strategies formed under the previous geopolitical and regulatory paradigm, well before the US elections. Under the new paradigm, some acquirers may pause to reassess their positions. However, others have already adapted and are actively pursuing new opportunities in response to shifting global dynamics”, concluded Jassal.