Medical Technology M&A Pulse – Q2 2026

MEDICAL TECHNOLOGY M&A MARKET DYNAMICS

• Deal volume increased to 113 transactions in Q2 2026 from 83 in Q1, a 36% sequential gain that marked the busiest quarter since the first quarter of 2025.
• Strategic acquirers remained the market’s primary driver, accounting for ~60% of deal volume as buyers leveraged strong balance sheets to pursue high-quality assets.
• Financial sponsors returned in force, completing 44 transactions compared to just 11 in Q1, as private equity firms re-engaged the market largely through platform add-on acquisitions.
• Equipment’s share of deal volume declined from nearly one-third of transactions in Q1 to 7% in Q2, while Services (28%) and Therapeutic Devices (19%) led activity; Contract Manufacturing, Consumables/Disposables, and Diagnostics each contributed roughly 11–12%, reflecting broad-based demand across the sector.

What We’re Discussing With Clients

Trade Policy Still Shapes MedTech Deals

Tariffs remain an important consideration in MedTech M&A. With most medical devices sold in the U.S. still manufactured overseas, the sector remains exposed to Section 232 and 301 tariffs, as well as retaliatory duties from key markets such as the EU, China, and Mexico. As a result, buyers are placing greater scrutiny on supply chain and manufacturing footprints during diligence. U.S.-based manufacturers are attracting increased interest, while contract manufacturers continue to see strong M&A activity as acquirers look to reduce tariff exposure and enhance supply chain resilience.

Connected Care Continues to Attract Strategic Capital

Healthcare providers and MedTech companies continue to invest in connected devices, remote patient monitoring, and workflow-enablement platforms as care delivery shifts beyond traditional hospital settings. Strategic buyers are prioritizing assets that improve clinical decision-making, enable real-time patient data capture, and create recurring revenue opportunities through software and service-based business models. Connected care remains one of the sector’s most attractive investment themes as organizations seek to improve outcomes while lowering the cost of care.