M&A activity in the medical device industry has been rife in 2021 as companies recover from the pandemic. Q1 saw the highest number of deals compared to the same period in previous years, with figures reaching $58.1bn, according to the deals database by GlobalData.

Aliyah Farouk, Senior Medical Devices Analyst at GlobalData comments: “The number of deals slowed down in the second quarter of the year, but there was a 47% increase in deal value in comparison to Q1. One prominent deal was the acquisition of Hill-Rom by Baxter: Baxter’s largest deal to date. This deal will make Baxter one of the leaders in the connected devices market and it is no surprise that the company is investing in the digital health space. The company has not been traditionally digitally driven, so this acquisition is a great investment amid the rise in ‘connected care’.

“In general, there has been an increasing wide adoption of connected devices in the healthcare industry. In the past few years, medical device companies have either been developing products with connectivity capabilities or taking part in strategic partnerships and acquisitions to enter the connected care market. Hill-Rom strengthened its position as one of the leaders in connected care by taking part in several acquisitions. The company acquired Excel Medical Electronics in January 2020 and EarlySense’s continuous monitoring technology in February 2020.

“The COVD-19 pandemic spurred the shift towards connected care both in and out of hospitals. With consumers more willing to use these devices, the future of health will be digital. Therefore, increasing activity in terms of product development, regulations, and acquisitions is expected.”