European HealthTech sees rising M&A and institutional investment

The European HealthTech sector is experiencing a significant surge in mergers and acquisitions (M&A) heading into 2027. Driven by record healthcare funds in the private equity industry and a strategic push by acquirers to integrate AI and data capabilities, the market is shifting toward larger, sponsor-led deals focused on scaled, cash-generative platforms.

Key drivers include the European Health Data Space (EHDS) regulatory framework, which is making interoperability a critical purchasing criterion for medical facilities. Recent major transactions include Hims & Hers’ $1.15 billion acquisition of Eucalyptus to expand telehealth services in the UK and Germany, RadNet’s acquisition of Gleamer in Paris, and Sectra’s acquisition of Lithuanian firm Oxi.

Simultaneously, institutional investors are increasingly targeting healthcare to address systemic pressures caused by aging populations. In the Netherlands, PGGM Investment Management has committed €300 million over five years to healthcare, focusing on digital applications, medical technology, and prevention. This trend reflects a broader movement to deploy long-term capital into innovation that increases effective care capacity as the EU's population over 65 is projected to rise to 29% by 2050.