Dive Brief:
- The medtech industry is on course for another active year of M&A after the decade-high reached in 2025, with capital market pressure and lower equity valuations fueling deals, PwC said in a report released Wednesday.
- PwC tracked $36.5 billion in medtech deals over the first half of 2026, with Boston Scientific’s Penumbra buyout and Danaher’s Masimo acquisition leading the way.
- The PwC analysts expect medtech dealmaking to stay active through the rest of the year as strategic acquirers move into high-growth areas and private equity firms capitalize on lower valuations.
Dive Insight:
Last year, PwC tracked $97.6 billion in medtech deals, the highest figure in more than a decade. While the number of deals lagged historical levels, Abbott’s $21 billion Exact Sciences buyout, Hologic’s $18.3 billion go-private agreement and BD’s $17.5 billion Waters pact drove total deal value.
PwC predicted medtech M&A would undergo a broader resurgence in 2026. Data from the midpoint of the year validate the prediction, with deal volumes and values tracking above the first half of 2025. Last year, a big fourth quarter inflated the final value figure.
The first half of 2026 featured five deals that PwC valuded at more than $1 billion. The takeovers of Penumbra and Masimo were followed by Amplifon’s acquisition of GN Store’s hearing business, Avanos Medical’s go-private agreement and Agilent’s Biocare Medical buyout. Some of the takeovers, including Boston Scientific’s Penumbra acquisition, have yet to close.
Medtronic is involved in three of the 10 largest deals of the first half of 2026. The company agreed to buy CathWorks, Scientia Vascular and SPR Therapeutics in quick succession as, in the words of Medtronic CFO Thierry Piéton, the business went “back on offense in M&A.” Larger deals could be coming, with Piéton naming the $1 billion to $3 billion range as the sweet spot for Medtronic’s takeovers.
Category innovation, adjacency expansion and ecosystem investment drove strategic dealmaking in the first half of 2026, PwC said in its report. Buyers targeted late-clinical and early-commercial assets in pursuit of leadership positions in categories such as structural heart, electrophysiology and neurostimulation. Companies also inked deals to expand into adjacent, higher-growth categories, particularly in cardiology.
Medtech companies’ focus on high-growth markets is driving divestitures and carve-outs, creating deal opportunities for strategic buyers and private equity firms. Take-private transactions are supported by capital market pressure and lower equity valuations, PwC said. In that environment, the analysts predict private ownership may better support multiyear value creation.
Geopolitical and trade dynamics could influence dealmaking activity in the second half of the year. PwC said tariffs, war in the Middle East and broader supply chain disruption have driven companies to focus on operational resilience, supply chain stability and profit margins over M&A. Dealmakers are prioritizing integration readiness, operational resilience and scenario-based underwriting, PwC said.
