Mental well being and wellness; medical imaging and AI-based diagnostic software program; and medical trials know-how proved most tasty to traders
London, UK – 21 April 2022. Hampleton Partners’ latest Healthtech M&A Market Report highlights how the Covid-19 pandemic revealed the inadequacies and alternatives on the earth’s healthcare techniques and the way enterprise and progress capital poured into digital well being corporations, elevating a complete of $57.2 billion in funding in 2021, a rise of 79 per cent from 2020.
David Bell, director, Hampleton Partners, mentioned: “Though the brand new funding has been considerably concentrated round telemedicine as a result of pandemic, enterprise capital is more and more diversifying its healthtech targets, with AI-based medical determination software program and digital therapeutics being key areas.
Hampleton Healthtech M&A Deals & Valuation Multiples 2018-2021
“We additionally discovered that Europe was a sizzling spot for funding with funding rounds considerably exceeding the worldwide common, with a 131 per cent improve to $6.7 billion in whole funding from 2020 to 2021. European digital well being funding now accounts for round 12 per cent of worldwide funding, up from 9 per cent in 2020.”
In phrases of M&A, throughout the entire healthtech sector, there have been 601 acquisitions in 2021, up 13 per cent from 2020 and up 40 per cent from 2019. Ten healthtech offers closed at over $1 billion throughout 2021.
Mental well being & wellness tech
The influence of the pandemic on particular person psychological well being has been felt the world over. During this era, funding in psychological health-related applied sciences reached $5.5 billion in 2021, rising 139 per cent since 2020.
Illustrative offers in Europe embrace UK-based Ieso’s $53 million Series B increase in November 2021 from VCs and CVCs together with Morningside Technology Ventures, Molten Ventures, and Sony Innovation Fund. Ieso gives on-line Cognitive Behavioural Therapy (CBT).
In March 2021, US-based Ginger, a supplier of on-demand psychological well being remedy, raised a $100 million Series E spherical led by Blackstone, earlier than merging with guided meditation app Headspace.
Medical imaging & AI diagnostics software program
Advancements in Artificial Intelligence (AI) and Machine Learning (ML) have an more and more broad software to productiveness and diagnostics, together with staffing productiveness and imaging interpretation effectivity. Investment from VCs and CVCs has greater than doubled from beneath $300 million in 2017 to $700 million in 2021.
PathAI, a supplier of AI-powered know-how instruments to quickly and precisely diagnose sufferers via biomarker evaluation, in addition to drug improvement, raised $255 million between their seed spherical in December 2016 and their newest Series C present in May 2021.
Clinical trials know-how
The pandemic massively disrupted the standard medical trial mannequin, in flip stalling drug improvement. This catalysed the necessity for innovation inside the medical trials course of and traders have responded by focusing on applied sciences that enhance recruitment and participation.
This sub-sector has seen an increase in funding of 53 per cent from $1.8 billion in 2020 to $2.7 billion in 2021. Examples embrace California-based Medable, which gives a platform geared toward simplifying the medical trial course of, raised funds twice in 2021; a $78 million Series C and $304 million Series D, taking whole funding to $507 million since 2015.
Meanwhile, Teckro, an Irish platform supplier aiming to enhance medical trial participant enrollment, raised $25 million in a Series D spherical in November 2021. The agency has raised a complete of $66 million, with funding from Northpond Ventures and Sands Capital.
Healthtech M&A 2022
Hampleton Partners anticipates that on the medical aspect, corporations specialising in illness monitoring and testing, biopharmaceutical analysis and medical provides are growing their technology-based preparedness to benefit from interoperability, digital well being, cloud-based platforms, synthetic intelligence, and different rising applied sciences.
On the affected person aspect, a rising variety of healthtech corporations are centered on telemedicine, health, wellness, psychological well being, smart-foods, and personalised, at dwelling well being monitoring. While utilizing telemedicine might have as soon as been a distinct segment private desire, Covid-19 has made this mainstream.
David Bell mentioned: “This backdrop has led to more and more vital capital elevating and M&A consolidation, particularly because the enterprise healthtech market alone is projected to succeed in $1.3 trillion by 2025 and is displaying no indicators of slowing down.
“We anticipate general sector volumes to be sustained throughout 2022, with valuations metrics in vertical software program and precision medication and on-line well being to retain present ranges on account of their growing significance inside healthcare productiveness and analysis.
“Given the surge in European well being tech funding throughout 2021, 12 months on 12 months progress in funding for 2022 is more likely to be decrease than 2021, however we anticipate deal quantity will improve.
“Ultimately, healthtech is benefitting from adoption and digitisation throughout COVID. In Europe and the US, it’s an more and more necessary investor asset class.”
Largest disclosed healthtech offers of 2021
The prime three offers by disclosed deal worth had been:
$30.0 billion – Data to Decision AG acquired MEDIQON GmbH, a supplier of software program options to handle and analyse knowledge for making knowledgeable healthcare sector choices
$28.3 billion – Oracle acquired Cerner Corp, a supplier of healthcare apply administration software program and SaaS, for five.2x income and 21.4x EBITDA
$19.7 billion – Microsoft acquired Nuance Communications, a supplier of AI-enabled desktop and cellular interactive voice response and automation SaaS, for13.6x income and 72.6x EBITDA
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Note to Editors:
Hampleton Partners’ M&A Market Reports are compiled utilizing knowledge and data from the 451 Research database, a part of S&P Global; Capital IQ, a product of S&P Global; CB Insights; Deloitte; and extra.
Download the complete Hampleton Partners’ Healthtech M&A Market Report 1H2022:
About Hampleton Partners
Hampleton Partners is on the forefront of worldwide mergers and acquisitions and company finance advisory for corporations with know-how at their core. Hampleton’s skilled deal makers have constructed, purchased and offered over 100 fast-growing tech companies and supply hands-on experience and unrivalled recommendation to tech entrepreneurs and corporations which wish to speed up progress and maximise worth.
With workplaces in London, Frankfurt, Stockholm and San Francisco, Hampleton gives a worldwide perspective with sector experience in: Artificial Intelligence, Autotech, Cybersecurity, Digital Commerce, Enterprise Software, Fintech, Healthtech, HR Tech, Insurtech and IT & Business Services.
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