Medical technology M&A momentum continues unabated, sustaining a ten-year high in the first half of 2026.

Medical Technology M&A Momentum Continues, First Half of 2026 Maintains Decade-High Levels

The wave of mergers and acquisitions in the medical technology industry did not subside after hitting a ten-year high in 2025. According to a report released this week by PwC, M&A transaction value in the industry reached $36.5 billion in the first half of 2026, with both deal volume and value exceeding the same period in 2025, demonstrating sustained strong market momentum.

Industry Background

In 2025, total medical technology M&A transaction value reached $97.6 billion, making it the most active year in over a decade. Although the number of transactions did not reach historical peaks, mega-deals such as Abbott's $21 billion acquisition of Exact Sciences, Hologic's $18.3 billion privatization, and the $17.5 billion merger between BD and Waters significantly boosted the total value. PwC had previously predicted a broader recovery in 2026, and the first-half data confirms this assessment.

Key Developments

There were five deals exceeding $1 billion in the first half of 2026. Boston Scientific's acquisition of Penumbra and Danaher's acquisition of Masimo ranked first and second, followed by Amplifon's acquisition of GN Store's hearing aid business, the privatization agreement for Avanos Medical, and Agilent's acquisition of Biocare Medical. Notably, Medtronic acquired three companies—CathWorks, Scientia Vascular, and SPR Therapeutics—within just a few months, all ranking among the top ten deals in the first half. Medtronic CFO Thierry Piéton stated that the company is "back on the offensive in M&A" and considers deal sizes between $100 million and $300 million as the optimal range.

PwC's analysis indicates that strategic buyers are primarily driven by three types of motives: category innovation (such as structural heart, electrophysiology, and neuromodulation), adjacent market expansion (especially in high-growth cardiovascular areas), and ecosystem investments. Buyers tend to target assets in late-stage clinical development or early commercialization to quickly gain leadership positions.

Market Impact

The sustained increase in M&A activity is having a profound impact on the medical device industry landscape. On one hand, large companies are rapidly entering high-growth areas through acquisitions, such as Boston Scientific's expansion into neurointervention and Danaher's expansion into patient monitoring. On the other hand, divestitures and spin-offs are also creating opportunities for strategic buyers and private equity. PwC points out that capital market pressures and lower equity valuations have driven "take-private" transactions (where public companies are acquired and taken private), which may be more conducive to long-term value creation.

Some small and medium-sized medical technology companies, facing valuation pressures, have become acquisition targets. Private equity funds, with ample capital, are actively entering the scene. For example, the $12.7 billion privatization of Avanos Medical is a typical case.### Challenges and Risks

Despite the strong momentum in the first half of the year, M&A activity in the second half may be affected by geopolitical and trade dynamics. PwC warns that tariffs, tensions in the Middle East, and risks of supply chain disruptions have led some companies to prioritize operational resilience, supply chain stability, and profit margins over M&A. Both parties to transactions are placing greater emphasis on integration readiness, operational resilience, and scenario-based underwriting assessments.

In addition, regulatory scrutiny of large M&A deals remains a potential obstacle. Boston Scientific's acquisition of Penumbra has not yet been completed and still requires regulatory approval.

Future Outlook

Looking ahead to the next 3-5 years, medtech M&A is expected to remain active. Strategic buyers will continue to seek bolt-on assets in high-growth areas, especially in structural heart, electrophysiology, neurostimulation, and robotic surgery. Private equity will leverage current valuation troughs to advance more privatization deals. Meanwhile, as AI and digital technologies integrate into medical devices, M&A around smart diagnostics, remote monitoring, and surgical robots may accelerate.

However, uncertainties in global trade policies and the regulatory environment could affect cross-border transactions, and companies need to strike a balance between pursuing growth and managing risks.

Conclusion

Medtech M&A is undergoing a structurally active cycle. The $36.5 billion deal volume in the first half of 2026 demonstrates the market's thirst for innovation and pursuit of growth segments. From strategic buyers to private capital, various forces are jointly reshaping the industry landscape. In the coming years, as technology convergence and capital flows continue, the integration of the medtech industry will deepen. It is worth noting that policy changes and geopolitical risks may become key variables affecting the pace of M&A, but the logic that the industry is long-term driven by M&A-fueled innovation and growth will not change.