Healthcare M&A Cools in February
The decline in activity could foreshadow another slow year
If healthcare M&A activity of February 2025 is any indication for how the rest of the year will play out, 2025 may not be a year of strong activity. According to data captured in the LevinPro HC database, throughout the month, there were 114 healthcare transactions reported. This is a 49% decrease from the 223 announced in January 2025 and a 17% decline from the 138 reported in February 2024.
The most active sector was the Other Services sector with 30 transactions. This is not surprising considering Other Services encompasses medical outpatient buildings (MOBs), which has seen notable demand over the past few years. In February 2024, 37 transactions in the sector were reported, less than the 50 reported in January.
Within the Other Services sector, the subsector with the most activity
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HC Real Estate M&A in 2024
Trends, Challenges and Regional Insights
As the healthcare sector continues to adapt to evolving needs, real estate mergers and acquisitions (M&A) have become pivotal in shaping the landscape of healthcare delivery. The healthcare real estate (HCRE) sector includes medical outpatient buildings (MOBs), ambulatory surgery centers (ASCs), life sciences buildings and other general healthcare real estate subsectors.
According to data captured in the LevinPro HC database, there were 263 HCRE deals announced in the United States during 2024. Activity in 2024 represents a significant increase from 234 deals in 2023, and shows a clear upward trend from the 236 in 2022, 184 in 2021, 90 in 2020, 34 in 2019 and only 11 in 2018. This growth indicates a robust expansion in the U.S.-based HCRE market and underscores a sector
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was MOBs with a total of 15 deals. This marks a 35% drop from January 2025 with 23 transactions, and is essentially on par with February 2024 with 15 deals.
Physician Medical Groups (PMG) was another active sector, totaling 28 transactions. This is 22% less than that of February 2024 when 36 PMG deals were reported. The dental market typically draws a lot of investor attention, especially from PE-backed firms, due toa to a combination of factors including the growing elderly population, a fragmented market with many small practices, and plenty of stable cash flow.
MB2 Dental Solutions was the only PMG buyer to complete two transactions throughout the month. It purchased Hawaii Endodontics, a three-location dental practice in the Aloha state, and in a seperate transaction acquired a group of family dentists located throughout the midwest and southern United States.
MB2 had been backed by Charlesbank Capital Partners since 2021, but in late 2024, the dental services organization received a significant capital investment valued at $525 million from Warburg Pincus, another PE firm.
Founded in 2007, MB2 offers general dentistry services, orthodontics, cosmetic dentistry and oral surgery. MB2 Dental has announced the most transactions (151) of any PE-backed groups over the last five years. More information and statistics such as this can be found in The Healthcare Services Acquisition Report, which was published in February.
Other buyers who announced a transaction in the PMG space were Epiphany Dermatology, Eye Health America and U.S. Oral Surgery Management.
Epiphany Dermatology acquired a dermatology group in Utah, and Eye Health America, a portfolio company of LLR Partners, added Eye Center of Central Georgia, which has five locations around the state.
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eHealth had 18 reported transactions, Biotechnology/ Pharmaceuticals had 13 deals and Home Health & Hospice had seven.
Teladoc Health, Inc. purchased Catapult Health for $65 million, or 1.5x Catapault's 2024 revenue. Catapult Health runs a robust telehealth platform for primary care visits.
Private equity (PE) firms account for nearly 31% of the completed transactions of the month, marking the most active buyer type. This falls in line with past months as PE has consistently been one of the most active (usually the most active) acquirer type for the past five years, averaging between 30 to 35% of the announced transactions per year.
This is slightly higher than the 42 PE deals announced in February 2024, representing 30% of the deals. PE groups that announced deals include LLR Partners, KKR & Co. Inc. and NMS Capital
Real estate investment firms reported nine transactions,
investment firms reported six deals, and health systems announced two acquisitions.
The buyer with the most transactions in February 2025 was Montecito Medical Real Estate with four acquisitions. Montecito Medical Real Estate specializes in healthcare-related real estate acquisitions and funding. Since 2006, it has completed transactions involving more than $5 billion in medical real estate across the United States.
The company purchased a three-building portfolio spanning Ball Ground, Woodstock and Dawsonville, Georgia; a two-building portfolio in Canton, Ohio; one MOB in Chandler, Arizona; and one MOB in Fayetteville, Georgia, all totalling 213,465 square feet. Additionally, since the start of 2025, Montecito Medical has announced nine transactions. Throughout 2024, the company completed 27 transactions, totaling 916,914 square feet.
Disclosed spending throughout February 2025 totaled more than $8.39 billion across 26 transactions. Compared to February 2024, this is a significant decrease, which saw more than $37.09 billion across 32 transactions in purchase prices.
The largest deal in February 2025 was Bain Capital’s acquisition of Mitsubishi Tanabe Pharma Corporation (MTPC), a Japanese company, for $3.3 billion.
MTPC, the pharmaceutical arm of Mitsubishi Chemical Group, is a research-driven pharmaceutical company focused on treatments for autoimmune diseases, diabetes and kidney disease, diseases of the central nervous system and other conditions. The investment is being led by Bain Capital’s private equity teams in Asia and North America, together with the firm’s life sciences team. The transaction is expected to close in the third quarter of 2025.
Overall, February 2025 showcased a decline in healthcare M&A activity, especially in comparison to year over year numbers. We predict that consolidation and strategic investments will continue to shape the healthcare landscape in 2025.
Top Stories of February 2025
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Specialists provides evidence-based behavioral therapy for individuals with autism spectrum disorder. The company has locations in Illinois and Georgia.
Based in Florence, Kentucky, Commonwealth ABA is focused on delivering autism services to children and adolescents with autism spectrum disorder. These two transactions follow Already Autism Health’s acquisition by the private equity group Triton Pacific Healthcare Partners in January 2025. Since Already Autism Health was purchased less than a month ago and has already announced two transactions, it is safe to assume that Triton Pacific Healthcare Partners has big plans to
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expand the company’s reach and may announce more acquisitions in the near future.
Additionally, since the beginning of 2020, the most The Stepping Stones Group, a portfolio company of private equity group Five , which has completed seven
Based in Lafayette, Colorado, The Stepping Stones Group provides therapy and behavioral health services to children in the K-12 educational setting. Stepping Stones serves more than 1,000 clients and 300,000 children annually across 42 states. Stepping Stones was founded in 2014.
Over the last five years, the company has purchased six autism treatment centers in California and one in Massachusetts.
In a May 2021 press release, Michael Langer, Partner at Five Arrows Capital, said, “Five Arrows Capital Partners
continues to support Stepping Stones' management team acquisitive growth strategy as they expand the company's national geographic footprint and service offerings to deliver critical developmental services to children and adolescents.”
Another active buyer in the autism space is Acorn Health, backed by private equity firm MBF Healthcare Partners, LP, which has announced five deals since 2020. Its most recent transaction was the acquisition of seven ABA centers in Florida and Virginia.
Acorn Health, formed in October 2018, manages a network of behavioral health companies. It has locations in Michigan, Florida, Illinois and Virginia. The addition of these centers takes Acorn's presence to 14 centers in Florida and 13 centers in Virginia. The centers were acquired through Breakthrough Behavior Florida. Terms were not disclosed.
Purchase prices are not commonly disclosed in the autism M&A market, mostly because a large portion of the buyers are private equity groups. However, since the start of 2020, there have been five transactions with disclosed purchase prices in the autism space.
The largest deal since 2020, in terms of price, was Charlesbank Capital Partners’ (CPC) acquisition of Action Behavior Centers from NexPhase Capital for $840 million.
Action Behavior Centers provides applied behavior analysis (ABA) therapy services for children on the autism spectrum through its numerous clinics across Texas. The company has more than $60 million in projected annual adjusted earnings.
CPC is a middle-market private investment firm managing more than $7 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings and engages in opportunistic credit and technology investments.
According to the August 17, 2022, press release, this transaction represents CPC’s first investment in the behavioral health care market. Typically, it is more active
in the dental market through its portfolio company MB2 Dental Solutions.
In 2024, the only transaction to have a disclosed price was Tenex Capital Management’s acquisition of Behavioral Innovations for $300 million. The seller was Chicago based private equity group Shore Capital Partners. According to a report by Mergermarkets, the acquisition commands a valuation in the high teens. Tenex Capital Management is a private equity firm that invests in middle-market companies.
Behavioral Innovations provides center-based and inhome ABA therapy, speech therapy and occupational therapy services to children ages birth through 18 with autism spectrum disorder and other related developmental disabilities. The company has 80 locations in three states: Colorado, Oklahoma and Texas. Almost 80% (63) of its locations are in Texas.
Industry experts point to several key trends shaping the future of the autism therapy market, including growing private equity interest, potential shifts in Medicaid funding and insurance reimbursement policies, evolving state regulations affecting provider profitability, and increasing competition among investors for market consolidation.
The Levin team was able to speak with Randy Decko, Senior Director at Agenda Health , who provided commentary on the ABA market. “We anticipate strong ABA M&A activity these next few years, barring any major macro-level changes that would reverse current M&A tailwinds. We've already closed four ABA transactions in 2025, with an even stronger pipeline behind it,” he said.
A December 2024 Behavioral Health Business article highlights expectations for greater engagement and accountability from families and payers. It also notes a push toward multidisciplinary care models, a demand for clearer career pathways for employees and the increasing role of technology in improving care quality and operational efficiency.
Similarly, a March 2024 National Law Review article
discusses heightened regulatory scrutiny as the sector grows, institutional investment keeps expanding and commercial and government funding increases.
Over the past five years, deal activity in the autism therapy market has fluctuated, reflecting broader behavioral health investment trends. While transaction volumes have varied, private equity firms remain the primary drivers of acquisitions and consolidation.
Despite challenges such as regulatory oversight, Medicaid funding changes and shifting reimbursement policies, investor interest remains strong. With demand for autism services and a competitive investment landscapes, M&A activity in the sector is expected to remain active in 2025.
Teladoc Health to Acquire Dallas, Texas-Based Catapult Health
Teladoc Health announced on February 5 that it signed a definitive agreement to acquire Catapult Health, a Dallas, Texas-based provider of virtual preventive care services.
Catapult Health is focused on transforming the delivery of preventive and primary care through its VirtualCheckup and worksite checkup solutions. VirtualCheckup is an at-home testing solution combined with video consultations with licensed healthcare providers. According to the original deal press release, Catapult Health’s trailing twelve-month revenue was approximately $30 million as of the third quarter of 2024. Catapult Health's annualized revenue for 2024, based on the first three quarters, would be approximately $40 million.
Teladoc Health is a multinational telemedicine and virtual healthcare company headquartered in Purchase, New York. The organization manages digital health services such as telehealth, AI and analytics. Teladoc Health delivers care in 175 countries and in more than 30 languages, partnering with employers, health systems and insurers.
“Merging Catapult’s virtual health risk assessment
expertise with Teladoc’s best-in-class chronic condition management programs creates a huge win for all stakeholders,” said David Michel, Chief Executive Officer of Catapult Health, in an email to the LevinPro HC editorial team. “This is as close to a perfect fit as one can get.”
“Catapult Health’s capabilities will help advance our strategy in meaningful ways — from giving more members access to convenient and impactful wellness and preventative care, to unlocking greater value for our customers,” said Chuck Divita, Chief Executive Officer of Teladoc Health. “Catapult Health brings an experienced team and a strong culture of innovation, and we are thrilled to welcome them to Teladoc Health.”
Teladoc Health plans to leverage Catapult Health’s approach to patient-centric at-home diagnostic testing, as well as its engagement and clinical support model, to complement Teladoc Health’s suite of integrated solutions.
When Catapult Health’s members are assessed with conditions or high-risk factors that require a health action plan, Catapult Health’s clinicians will be able to directly enroll eligible members into Teladoc Health’s diabetes, hypertension, pre-diabetes and weight management programs, and seamlessly refer them to Teladoc’s virtual mental health therapists and primary care providers.
Teladoc Health will also use Catapult Health’s technology to support new product enhancements, such as providing customers with lab-confirmed A1c values on which to base population enrollment and close gaps in care.
The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions. Following the closing of the transaction, Catapult Health will operate within the Integrated Care segment of Teladoc Health.
This also marks Teladoc Health’s first acquisition of 2025.
CareFirst Urgent Care Expands Presence in Kentucky
CareFirst Urgent Care has announced the acquisition of Rapid Relief Urgent Care, adding three new location. Rapid Relief Urgent Care operates three urgent care centers in Kentucky. Two urgent care centers are located in Bowling Green, and one in Elizabethtown.
Founded in 2011 by Chetan Gupta, M.D., CareFirst Urgent Care is a provider of walk-in urgent care services, offering accessible healthcare to communities across multiple states, including Ohio, Kentucky and Nevada. With a focus on patient-centered care, CareFirst is committed to providing timely medical attention for a variety of non-emergency conditions. From common illness and injury like colds and fractures, to additional healthcare services like labs and health screenings, CareFirst Urgent Care provides the full spectrum of urgent care services.
With the addition of Rapid Relief Urgent Care, CareFirst Urgent Care is expanding access to medical care in Kentucky. With this transition, patients will experience several key benefits, including extended hours, enhanced facilities, comprehensive insurance coverage and improved patient experience. Financial terms of the deal were not disclosed.
Eye Health America Acquires Quigley Eye Specialists
Eye Health America (EHA), a portfolio company of LLR Partners, announced on February 17 that it acquired Quigley Eye Specialists in Fort Myers, Florida. Quigley Eye Specialists provides a full range of ophthalmology and optometry services across southwest Florida. The practice was founded in 1988 and has 10 locations across the state. According to its website, there are 20 physicians on staff.
EHA is an eye care practice management company. Its member practices offer eye exams, contact lenses and glasses, medical ophthalmology and surgery. It has 96 physicians across 53 locations, 10 ambulatory
surgical centers and more than 1,200 employees in South Carolina, Georgia and Florida. The company was founded in 2018 by LLR Partners, Clemson Eye and The Eye Associates
This acquisition is part of EHA’s ongoing strategy to expand its network of premier eye care providers across the Southeastern United States. The financial terms of the deal were not disclosed.
Summer Health Acquires Caraway Health
New York City-based Summer Health announced on February 11 that it entered into an agreement to acquire Caraway Health.
Caraway Health is a Gen Z-focused virtual care company that was founded in 2022. The company is focused on caring for Gen Z women’s health. It offers a wide array of mental health services, as well as physical and reproductive health, for women between the ages of 18 and 29.
Summer Health is a pediatric telehealth messaging service that provides parents with access to pediatric care via text message. The deal will give Summer Health a new foothold in adolescence and early adult health. Financial terms of the deal were not disclosed. This is Summer Health’s first acquisition of the year.
Abound Health Acquires Pediatric Home Health Provider Star Pediatrics
Abound Health announced on February 13 that it entered a strategic partnership with Star Pediatrics, a New Jersey-based pediatric home health provider. Abound Health acquired Star Pediatrics in a deal that was effective February 7, 2025.
Star Pediatrics specializes in delivering in-home care to children with complex medical needs, supporting both the child and their family. The company is based in Saddle Brook, New Jersey.
Abound Health is a provider of healthcare solutions for individuals with intellectual and developmental
disabilities (I/DD). Headquartered in Charlotte, North Carolina, the company operates in multiple states and serves thousands of individuals annually.
This acquisition expands Abound Health's services to include pediatric patients with complex medical needs, complementing its existing I/DD care services such as residential support, day programs and behavioral health interventions. It also strengthens Abound Health's position in the Northeast market, complementing its existing operations in North Carolina and Pennsylvania. Financial terms of the deal were not disclosed.
Provident Healthcare Partners Advises Potomac Urology Center
On February 27, Provident Healthcare Partners, LLC announced that it advised Potomac Urology Center on its acquisition by an undisclosed buyer. The financial terms of the deal were not disclosed.
Potomac Urology Center is a urology practice with five
locations in the Washington, D.C. MSA. According to its website, there are 11 physicians on staff who are supported by a team of four physician assistants.
Provident Healthcare Partners is an investment banking firm specializing in merger and acquisition advisory, strategic planning and capital formation for middlemarket and emerging growth healthcare service companies.
This also marks the third transaction that Provident has advised on in 2025 so far. Previously, it advised Hawaii Endodontics when it was acquired by MB2 Dental Solutions, and then an undisclosed buyer’s purchase of a Northeastern-based orthopaedic practice. Additionally, in 2024 Provident advised on 16 transactions.
ripe with opportunities for both investors and healthcare providers looking to leverage real estate for better service integration and patient access.
In 2024, certain states have stood out as particularly active in HCRE M&A. This analysis focuses on the most active U.S. states for these transactions, highlighting the driving forces behind this activity and the opportunities and challenges shaping the U.S. HCRE landscape.
MOBs have been the focal point of numerous transactions, especially in states experiencing significant population growth. In 2024, they accounted for about 79% of all U.S.-based HCRE deals, totaling 207, with Texas and Florida leading the charge, each with 28 deals. These states are growing and they're healthcare hubs in the making, driven by demographic booms. According to the U.S. Census Bureau, Texas added roughly 562,941 residents from 2023 to 2024, a 1.8% growth rate, while Florida saw an increase of about 467,347 people, with a 2% growth rate, both surpassing the national average of 1%.
This rapid population growth has intensified the need for additional healthcare facilities, particularly in highgrowth urban areas and underserved rural regions.
Private equity firms and real estate investment trusts (REITs) have played a significant role in shaping the HCRE landscape. Institutional investors continue to acquire medical office buildings and specialty care centers, focusing on markets like California and New York, where demand remains strong. In terms of M&A activity, real estate investment firms were the most active investor type with 103 deals, accounting for approximately 39% of U.S.-based HCRE transactions.
Private equity and/or their portfolio companies followed, participating in 32 deals, which made up about 12% of the market. REITs were involved in 23 deals. Health systems were the least active among these groups, participating in 16 deals.
In the U.S.-based HCRE market of 2024, Montecito
Medical Real Estate emerged as the most active acquirer, with 25 HCRE deal announcements. Other notable players included Four Corners Property Trust with eight acquisitions, Remedy Medical Properties with seven and a cohort of firms like Woodside Health, LLC, Stockdale Capital Partners, LLC, National Dental Healthcare REIT, Hammes Partners, Big Sky Medical and Anchor Health Properties , each announcing four deals. These companies, alongside the brokers facilitating these transactions, have been pivotal in driving the momentum within the sector.
In 2024, the healthcare real estate sector saw deals with notably high price tags. The largest transaction was Lonza Group's acquisition of a manufacturing facility in California, for $1.2 billion, at roughly $2,810 per square foot, announced in March. Additionally, the largest U.S.based MOB deal was completed by Remedy Medical Properties and Kayne Anderson, which acquired 37 medical outpatient buildings from Broadstone Net Lease Inc. for $251.7 million. That deal includes a portfolio spanning 700,000 square feet across 13 states. Of note, there were 109 U.S.-based HCRE deals with disclosed prices, and of those, nearly all of them (108 deals) surpassed the million-dollar mark.
Regulatory and policy considerations have also influenced transaction activity, particularly in states with Certificate of Need (CON) laws, which require healthcare providers to prove the necessity of new or expanded facilities before they can proceed, thereby shaping the landscape of HCRE mergers and acquisitions.
In markets such as New York and Illinois, HCRE M&A has often been driven by the need for existing providers to expand within these regulatory frameworks rather than new entrants developing facilities from the ground up. This has created a competitive environment where health systems must strategically acquire properties to remain compliant and expand their reach.
Rural healthcare consolidation has been another defining trend, particularly in the Midwest and Western states ..................................... Continued on LevinPro HC
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Seniors Care and Healthcare M&A Intelligence
Top Deals February 2025 Hospitals
HealthCare Global Enterprises NSE: HCG KKR & Co. L.P.
Bangalore, India
New York, NY
In Brief: HealthCare Global Enterprises Limited (HCG) is one of India's largest oncology-focused private hospital groups, with a significant network of oncology centers located across leading cities and treating thousands of new cancer patients every year. HCG operates 25 medical care centers across 19 cities and has 2,500 beds, nearly 100 operating theaters and 40 linear accelerator machines. As part of the transaction, KKR will acquire up to 54% of equity in HCG from CVC Asia V (a fund of CVC Capital Partners) for $400 million, implying a total enterprise value of approximately $741 million.
Top Deals February 2025
PRISM Vision Holdings, LLC
Geesthacht, Germany Irving, TX
Physician Medical Groups
In Brief: PRISM Vision Holdings, LLC is a premier provider of general ophthalmology and retina management services. PRISM comprises 91 locations, 7 ambulatory surgery centers, 180 physicians and more than 1,200 employees throughout New Jersey, Pennsylvania, Delaware, Virginia, Maryland and the District of Columbia including one of the largest networks of retina providers in the country. Following completion of the transaction, PRISM Vision will be consolidated within McKesson’s U.S. Pharmaceutical segment.
Top Deals February 2025
Torrey Pines, CA San Diego, CA
Other Services
In Brief: A three-building life science portfolio in Torrey Pines, California was sold. The 186,000-square-foot portfolio is called MUSE and is 49% leased, with a weighted average lease term of more than eight years. The price is roughly $855 per square foot.
10-building portfolio N/A Altera Fund; TPG 2/14/2025 2/14/2025
AZ; IL; MA; TN; TX Dallas, TX; Los Angeles, CA
In Brief: Totaling 300,000 square feet, the portfolio comprises ten medical outpatient buildings located in Arizona, Illinois, Massachusetts, Tennessee and Texas.
Top Deals February 2025
Biotheus Inc. Private BioNTech AG
Tangjiawan Town, China Mainz, Germany BNTX
Biotechnology & Pharmaceuticals
In Brief: Biotheus is a Chinese biotechnology company that aims to discover and develop effective therapeutic biologics for patients with cancer and inflammatory disease.
Mitsubishi Tanabe Pharma Corp. Private Bain Capital Private 2/7/2025 $3,300,000,000 Osaka, Japan Boston, MA
In Brief: Mitsubishi Tanabe Pharma Corp. (MTPC), the pharma arm of Mitsubishi Chemical Group, is a research-driven pharmaceutical company focused on treatments for autoimmune diseases, diabetes and kidney disease, diseases of the central nervous system and other conditions. MTPC is one of the oldest pharmaceutical companies in the world, founded in 1678.
Deal Volume, February 2025 vs. January 2025 and February 2024
Source: LevinPro HC, March 2025
