Healthcare M&A Deal Volume Drops in Q2:26, According to Acquisition Data from LevinPro HC

NEW CANAAN, Conn., July 30, 2026 (GLOBE NEWSWIRE) -- Healthcare M&A activity decreased in Q2:26, with 459 publicly announced transactions, according to data captured in the LevinPro HC platform. Activity in Q2:26 was marginally lower than the 553 deals announced in the first quarter of 2026. In a year-over-year comparison with Q2:25, activity also dropped roughly 23% from 503 acquisitions.

Physician Medical Group (PMG) led the deal activity with 106 (23%) reported transactions, down from Q1:26, when 124 PMG deals were announced. With 54 deals, dental was the most popular specialty among investors, followed by internal medicine (7) and pediatrics (6). M&A deal volume in the healthcare services space was also bolstered by Medical Outpatient Buildings (51 deals), Home Health & Hospice (20) and Behavioral Health Care (18). 

The most active sector within the healthcare technology markets was eHealth, with 58 deals (a 25% decline from Q2:25), particularly among companies offering AI-driven services like revenue cycle management (10 deals) and Medical Practice Management Software (nine deals). Activity in the Medical Device sector also accounted for a large share of deal volume, with 27 deals, up from 21 in Q1:26.

Q2:26 saw an influx of capital, with disclosed spending climbing to $95.3 billion across 78 transactions, outpacing Q1:26’s $74.7 billion and nearly tripling the $28.7 billion recorded in Q2:25. Despite a slight dip in overall deal volume, total value was driven by a surge in “mega-deal” activity, featuring 21 deals totaling more than $1 billion, up from 13 in Q1:26.

The largest-priced deal was Sun Pharmaceutical Industries Ltd.’s acquisition of Organon & Co., a pharmaceutical company specializing in reproductive medicine, contraception, psychiatry, hormone replacement therapy and anesthesia, for $11.75 billion.

Merck also spent $11.3 billion to buy Bio-Techne Corporation, a provider of life science tools, analytical technologies and consumables. According to its most recent annual filing, Bio-Techne reported a full-year fiscal 2025 revenue of $1.22 billion, and EBITDA of $213 million. This is Merck’s second deal of the year, following its $6.7 billion acquisition of Terns Pharmaceuticals Inc. in March.

Private equity deal volume remained consistent in a quarter-over-quarter analysis with 151 deals reported in Q2:26 and 150 in Q1:26. However, this activity marks an increase in private equity’s market share, climbing to 33% from 27%. Additionally, these two quarters mark a rise from Q2:25 when 133 private equity deals were announced. PMG accounted for 39% of private equity’s activity throughout the quarter with 59 deals. eHealth also attracted a fair share of private equity interest, with 21 deals.

In a year-over-year comparison, both health systems and real estate investment firms saw increased activity: there were 30 health systems deals in Q2:26, up from 22 in Q2:25, and 37 real estate investment firm deals in Q2:26, up from 33 in Q2:25.

Throughout the second quarter of the year, Hospitals accounted for less than 50% of health systems’ deal volume with 13 transactions. With tightening margins and a patient demand for outpatient services, health systems are increasingly purchasing non-hospital assets, including Physician Medical Group (six deals), Outpatient Surgery Centers (two deals), Urgent Care (two deals) and Medical Outpatient Buildings (one deal).

One of the more notable Hospital deals was Allina Health’s merger with Sutter Health. Allina Health has a network of more than 90 clinics, 12 hospital campuses, 1,800 beds, 13 retail pharmacies, specialty care centers, home care, and emergency medical transportation. Sutter Health is a not-for-profit healthcare system that reported nearly $20 billion in total revenues in 2025. It has 27 hospitals and more than 100 outpatient care sites.

“Activity in the second quarter highlights a selective market where investors continue to prioritize high-quality and non-traditional assets, especially in the eHealth and Hospital spaces,” said Kate Humphrey, an analyst with LevinPro HC. “At the same time, we are confident that deal activity will remain strong as long-term demographic and reimbursement trends favor physician groups and medical outpatient activity.”

All quarterly results are published in The Health Care M&A Report, which is part of LevinPro HC, a research intelligence platform published by Irving Levin Associates, LLC. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets. 

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