BY Fraser Tennant
Despite global economic uncertainty, M&A activity in the UK healthcare sector remained robust throughout Q1 2025 with deals continuing to flow, according to a new report by Heligan Group.
In its ‘UK Healthcare M&A Update: A Look Back at March 2025’, Heligan reveals that transaction activity across the sector remained on par with 2024 deal levels, with 59 deals completed in Q1 of 2025 – 17 in January, 17 in February and 25 in March.
Drilling down, health and social care remained the most active sector in Q1, accounting for 48 percent of total deal volume in March, driven by several lower-value transactions in the care home space.
Activity in pharma and life sciences also increased in March, representing 28 percent of deal volume, from two deals in February to seven, with oncology deals being a significant proportion of this subsector.
“Healthcare providers are increasingly adopting technologies such as remote monitoring, virtual consultations and artificial intelligence (AI)-driven triage systems to address growing patient demand and workforce challenges,” said Ramesh Jassal, a partner at Heligan Group. “These innovations are particularly focused on mental health, chronic condition management, and resource-efficient staffing, reflecting the evolving needs of modern healthcare systems.”
Key health and social care deals highlighted in the report include Eden Futures’ acquisition of Care Wish, BGF’s investment in OCL Vision, M&D Green Pharmacy Group’s acquisition of Nine Gordons Chemists stores and UK-based Pebbles Care acquiring Nurture Childcare Services.
In terms of pharmaceutical and life science deals, the majority of these were strategic acquisitions, including Swedencare’s acquisition of Summit Veterinary Pharmaceuticals and Surface Technologies’ acquisition of Accentus Medical.
However, a potential obstacle to a sustained international interest in UK healthcare assets are recent US tariffs, which are likely to introduce uncertainties that could influence future M&A activity, warranting close observation in the coming months.
“As we navigate 2025, weaker UK currency and recent US tariffs may enhance the appeal of UK healthcare assets to foreign buyers, potentially positioning the UK as a strategic gateway to the US market,” noted Mr Jassal. “However, the effectiveness of this opportunity depends on the evolving nature of US trade policies and their impact on global supply chains.”