The UK’s healthcare industry saw a strong first half of the year, with activity driven by strong activity in the health and social care and healthcare IT sub-sectors. Despite significant ongoing geopolitical instability, the UK’s healthcare sector continues to be seen as stable and attractive by buyers.
According to research by Heligan Group, there were 134 M&A deals in the UK healthcare sector during the first half of 2025. While this was broadly in line with the 130 transactions recorded in H1 2024, the figure is expected to rise further with the retrospective addition of more deals.
74 per cent of deals in H1 2025 were in the health and social care and healthcare IT sub-sectors, up sharply from 51 per cent in the first half of 2024. Health and social care also accounted for 16 per cent of outbound deals, a slight decline from last year, with Ramesh Jassal, Partner, Corporate Finance, Healthcare at Heligan Group, saying this “suggests a growing focus on UK-based opportunities amid global uncertainty”.
Jassal continued: "Outbound deal volume decreased to 19 per cent, whilst internal deal volume increased to 57 per cent, highlighting that UK buyers prefer internal assets amidst an unstable global political environment.”
Deal volume in the pharmaceutical and life sciences sub-sectors fell from 29 per cent of the total in H1 2024 to 24 per cent this year. There was also a drop in medical equipment and device transactions, which fell from 20 per cent of the total in H1 2024 to 11 per cent so far this year.
According to Heligan, the dip in pharma and life sciences M&A was the result of regulatory uncertainty in the US, with changes at the CDC, FDA and NIG, as well as broader political and economic headwinds. However, the sub-sector accounted for close to half (47 per cent) of inbound deal volume, with Heligan stating this demonstrated “the UK’s safe haven status”.
Ramesh Jassal said that North America remained the number one investor in the UK healthcare sector, reflecting a trend seen in numerous other industries, and that the UK “continues to invest strongly in the US.” Jassal said he expected this trend to continue, as a result of “preferential tariff treatment between the US and UK versus Europe.”
Jassal stated that the M&A landscape was dominated by trade buyers, who accounted for 84 per cent of transactions, with private equity buyers largely remaining focused on bolt-on deals. While saying that he anticipates “continued resilience in deal activity in H2 2025”, Jassal also acknowledged the uncertainty dealmakers face.
"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,” he said, adding: “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."
Find out more about UK healthcare M&A:
Care in the community: M&A in the healthcare services market
Strategic trade buyers and inbound deals drive robust healthcare M&A
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