Medical technology M&A continues to be strong: PwC report shows transaction volume in the first half of 2026 reached $36.5 billion

Medical Technology M&A Boom Continues: PwC Report Reveals $36.5 Billion in Deal Value for First Half of 2026

After hitting a decade high in 2025, the medical technology M&A market maintained strong momentum in the first half of 2026. According to the latest report released by PwC in June, total M&A transaction value in the medtech sector reached $36.5 billion in the first half of the year, with both deal volume and value exceeding the same period in 2025.

Industry Background

In 2025, total M&A transaction value in the medtech industry hit $97.6 billion, the highest in a decade. While deal volume was below historical averages, large transactions such as Abbott's $21 billion acquisition of Exact Sciences, Hologic's $18.3 billion privatization, and BD's $17.5 billion acquisition of Waters pushed the total higher. At that time, PwC predicted a broader recovery in 2026, and the first-half data confirmed this outlook.

Key Developments

There were five transactions exceeding $1 billion in the first half of 2026. Notable deals included Boston Scientific's acquisition of Penumbra, Danaher's acquisition of Masimo, Amplifon's acquisition of GN Store's hearing business, the privatization of Avanos Medical, and Agilent's acquisition of Biocare Medical. Medtronic notably participated in three of the top ten deals in the first half, sequentially acquiring CathWorks ($585 million), Scientia Vascular ($550 million), and SPR Therapeutics (approximately $650 million). Medtronic CFO Thierry Piéton stated that the company is "reassuming an offensive stance in the M&A arena" and believes the optimal deal size range is between $1 billion and $3 billion.

Market Impact

PwC's analysis indicates that strategic buyers' M&A motivations primarily stem from category innovation, adjacent market expansion, and ecosystem investments. Buyers are targeting late-stage clinical and early-stage commercial assets in areas such as structural heart disease, electrophysiology, and neuromodulation to compete for leadership positions. At the same time, companies are entering high-growth adjacent fields like cardiology through transactions. Divestitures and spin-offs are also creating opportunities for both strategic buyers and private capital. Against the backdrop of market pressure and relatively low valuations, privatization deals are gaining support, with PwC suggesting that privatization may be more conducive to long-term value creation.

Challenges and Risks

Geopolitical and trade dynamics could impact M&A activity in the second half of the year. PwC notes that tariffs, the situation in the Middle East, and supply chain disruptions are prompting companies to prioritize operational resilience, supply chain stability, and profit margins over M&A. Deal parties are prioritizing integration readiness, operational resilience, and scenario-based underwriting.

Future OutlookLooking ahead to the second half of the year, PwC analysts expect medical technology M&A to remain active. Strategic buyers will continue to shift towards high-growth areas, while private equity capital takes advantage of lower valuations to make deals. Large transactions may continue to emerge, with companies like Medtronic clearly indicating their focus on targets in the range of $1 billion to $3 billion. The industry landscape is expected to be further reshaped.

Conclusion

M&A data for the first half of 2026 indicates that capital flows in the medical technology sector remain active. Strategic buyers are entering high-growth tracks through acquisitions, while private equity capital uses market volatility to find value opportunities. Amid geopolitical uncertainty, transacting parties are placing greater emphasis on operational resilience and integration capabilities. In the coming quarters, sub-sectors such as cardiovascular, neuromodulation, and structural heart disease are expected to continue attracting substantial capital, while corporate spin-offs and privatization trends may deepen further. The wave of consolidation in the medical technology industry is far from over.

*Source: PwC MedTech Deals Outlook Report, June 2026. Data as of June 30, 2026.*