One of the year’s largest transactions came in January, when Boston Scientific agreed to acquire Penumbra for $14.5 billion. The deal is expected to strengthen Boston Scientific’s cardiovascular portfolio and expand its presence in mechanical thrombectomy and neurovascular markets. Penumbra develops technologies designed to remove blood clots from the brain, arteries, and veins, including its Thunderbolt computer-assisted vacuum thrombectomy platform for acute ischemic stroke treatment, which received U.S. Food and Drug Administration (FDA) authorization in June.
Boston Scientific Chairman and CEO Mike Mahoney described the acquisition as financially compelling, emphasizing its potential to accelerate growth, improve operating margins, and create long-term value for patients, customers, and shareholders.
The consolidation trend has extended beyond cardiovascular technologies. In March, Amplifon completed its €2.3 billion ($2.64 billion) acquisition of GN Store Nord’s hearing business, significantly expanding its global footprint. The transaction gives the Milan-based company access to a workforce of approximately 20,000 employees, operations in more than 100 countries, and a portfolio of more than 2,800 patents.
Strategic portfolio expansion has also driven several major acquisitions. Agilent Technologies completed its $950 million all-cash acquisition of Biocare Medical in June, strengthening its capabilities in clinical and research pathology, particularly in immunohistochemistry and in situ hybridization.
Johnson & Johnson also expanded its cardiac ablation business through the acquisition of Atraverse Medical, adding its Hotwire Transseptal Access System and expertise in pulsed field ablation. Meanwhile, Stryker agreed to acquire Amplitude Vascular Systems in a transaction valued at up to $835 million, adding revascularization technology to its peripheral vascular portfolio. Amplitude’s Pulse IVL System uses intravascular lithotripsy to treat calcified arterial blockages and restore blood flow.
Other major transactions have focused on expanding companies’ presence in specialized medical markets. Danaher acquired pulse oximetry developer Masimo for $9.9 billion, combining its non-invasive patient monitoring technologies with Radiometer’s blood analysis capabilities to strengthen its position in patient care.
Boston Scientific also expanded into implantable tibial nerve stimulation through its acquisition of Valencia Technologies. Medtronic broadened its neurovascular and chronic pain management portfolios through acquisitions of Scientia Vascular for $550 million and SPR Therapeutics for $650 million in cash.
Additional transactions included Olympus Corporation’s $270 million acquisition of BioProtect, GE HealthCare’s $945 million acquisition of SOFIE Biosciences, Cardinal Health’s $360 million expansion of its home care business through acquisitions involving AdaptHealth’s diabetes health business and Strive Medical, and Teledyne Technologies’ $1.1 billion acquisition of Varex Imaging.
Boston Scientific also made a $1.5 billion investment in privately held MiRus in May, securing a 34% equity stake and potential access to the company’s heart valve business. The investment represents a strategic move to re-enter the balloon-expandable transcatheter aortic valve replacement (TAVR) market.
AI and Advanced Technologies Drive Investment
Artificial intelligence has emerged as another major driver of investment and acquisition activity across the medtech industry.
Medtronic agreed to acquire CathWorks for up to $585 million, adding its FFRangio System, which combines AI and computational science to assess coronary artery disease using routine angiograms. Roche also entered the digital pathology market through its acquisition of Boston-based PathAI for up to $1.05 billion. PathAI develops AI-powered models and diagnostic tools designed to improve the analysis of patient tissue samples.
Industry analysts increasingly view AI as a critical factor in determining the strategic value of healthcare acquisitions. Nelson Advisors identified advanced AI and generative AI capabilities as major drivers of dealmaking, citing their potential to improve operational efficiency, streamline workflows, and address persistent pressure on profit margins.
Investment has also continued in high-growth areas such as robotics, diabetes care, structural heart technologies, pulsed field ablation, and neurovascular solutions. According to EY Global Medtech Leader John Babitt, companies are increasingly prioritizing investments in markets that offer significant long-term growth opportunities and opportunities to improve healthcare delivery.
Divestitures Reshape Medtech Portfolios
While acquisitions have helped companies expand their capabilities and enter new markets, divestitures have become an equally important part of corporate strategy.
BD, Thermo Fisher Scientific, Medtronic, Johnson & Johnson, Baxter Healthcare, Philips, and ResMed have all pursued portfolio restructuring through announced divestitures or completed business spinouts.
These moves reflect a broader industry focus on streamlining operations, concentrating resources on core businesses, and improving strategic flexibility. Companies are increasingly reassessing their portfolios to identify businesses that align with long-term growth priorities while redirecting investment toward emerging technologies and higher-value markets.
Analysts also point to the growing role of AI in corporate decision-making, enabling companies to access real-time market insights, evaluate acquisition opportunities more efficiently, and respond more quickly to changing market conditions.
A More Strategic Era for Medtech M&A
The latest wave of mergers, acquisitions, and divestitures signals a broader transformation in the medical technology industry. Rather than pursuing growth through scale alone, companies are increasingly prioritizing targeted investments that strengthen technological capabilities, expand access to high-growth markets, and support innovation across the healthcare sector.
From advanced cardiovascular and neurovascular treatments to AI-powered diagnostics and digital health solutions, capital is flowing toward technologies expected to shape the next generation of medical care.
As competition intensifies and healthcare delivery continues to evolve, strategic dealmaking is becoming a key tool for medtech companies seeking to strengthen their market positions, accelerate innovation, and secure long-term growth.
source: MPO
