Digital health investments are seeing a significant slow down, but mergers and acquisitions are on the rise as investors see this strategy as a new way to invest, according to a Nov. 7 report from Rock Health.
Key digital health merger and acquisition trends to know:
- In 2021, digital health mergers and acquisitions averaged nearly 23 deals per month for an annual total of 273 deals.
- In January and February of 2022, digital health mergers and acquisitions averaged 23 deals monthly.
- This shifted as economic headwinds caused digital health mergers and acquisitions to drop to 13 deals monthly during the second quarter of 2022.
- Merger and acquisition activity caught a small upswing in the third quarter, however, with an average of 15 deals per month, bringing total digital health merger and acquisition deals in the first three quarters of 2022 to 144.
- The report expects this trend to continue into the fourth quarter of 2022, with merger and acquisition deals continuing to increase.