Medtech M&A 2025 – What’s happening?

Q1 2025 is already in the rearview mirror, and there were several notable mergers and acquisitions (M&A) announcements.

For example, in January:

• Zimmer Biomet’s intention to acquire Paragon 28 for approximately $1.1 billion went public (total value of the deal could be closer to $1.2 billion given the upfront cash payment of $13 per share and contingent value right of up to $1 per share based on certain achievements). Through this acquisition Zimmer aims to bolster its offerings in fracture, trauma, and joint replacement for foot and ankle conditions.
• Stryker had a busy month, announcing a definitive agreement to purchase Inari Medical for around $4.9 billion. Separately, Stryker surprisingly decided to divest its U.S. spine implants business to investment firm Viscogliosi Brothers, now known as VB Spine.

February also saw several announcements:

• For an undisclosed amount, Medtronic acquired Nanovis’ nanotechnology to develop PEEK (polyether ether ketone) interbody spine fusion devices that enhance implant fixation in a move aiming to strengthen its spine implant offerings.
• Teleflex announced plans to acquire most of Biotronik’s vascular intervention assets for $791 million; part of Teleflex’s broader strategy to streamline operations and focus on high-growth areas.
• Thermo Fisher Scientific agreed to acquire Solventum’s purification and filtration division for $4.1 billion, enhancing its position in the bioprocessing filtration market. In 2024 alone, Solventum’s filtration unit generated $1 billion in revenue by providing their purification filters for food, beverages, and drug development.

March continued with more activity:

• Private equity (PE) firm Clearlake Capital announced they’re set to acquire a majority stake in healthcare software company Modernizing Medicine (ModMed). Offering electronic health records systems, ModMed is already used by more than 160,000 specialty physicians and surgeons in the U.S. This transaction is expected to be the largest healthcare sector leveraged buyout in 2025 at a $5.3 billion value (including debt). The two co-founders will retain a minority shareholding.
• Boston Scientific agreed to buy renal denervation firm Sonivie for up to $540 million in efforts to catch up with Medtronic and Recor Medical in the space. This acquisition provides them with the remaining 90% equity stake, having previously owned a 10% stake in the business.

What does this Q1 M&A activity tell us about the current state of the industry, buyer mindset, and impact of the current administration?

Foremost, it’s clear the industry is hungry for innovation and M&A is continuing to define corporate strategies (acquisitions and divestitures). Technological innovations such as artificial intelligence (AI), wearables, and remote monitoring devices enhancing diagnostics, care delivery, and more personalized medicine are in high demand. M&A has always served as an option for companies to expand their market presence to remain competitive, and the pace at which market demands are evolving leaves M&A as a potentially easier option than the lengthy timelines (and costs) of researching and developing new platforms in-house.

In the U.S., with the re-election of President Trump, there’s also been an anticipation of a more pro-business regulatory environment. In healthcare, a sector known to be under increased scrutiny, this anticipation can be encouraging for companies considering pursuing strategic acquisitions. While deals take time, and the flutter of aforementioned deals likely were in discussion prior to Election Day, there’s an assumption M&A activity will continue to be prolific in 2025 now that this pro-business administration is officially in-house.

For financial buyers as well, the environment appears to be favorable. Dry powder is reaching extraordinary levels, with estimates at more than $2 trillion globally. PE serves as a huge engine for M&A in general, and with many firms adding healthcare to their portfolios for its reputation of being a generally safe industry, we anticipate there’ll be both small and large deals coming from them as the year continues.

It will be exciting to watch this M&A resurgence continue to take shape through 2025 and beyond.

ABOUT THE AUTHORS: CEO Florence Joffroy-Black is a long-time Medtech M&A and marketing expert. She can be reached at florencejblack@medworldadvisors.com. Managing Director Dave Sheppard is a former medical OEM Fortune 500 executive and an experienced Medtech M&A professional. He can be reached at davesheppard@medworldadvisors.com. Value = Strategic Fit + Timing® is a registered trademark of MedWorld Advisors.

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