After several years of heightened dealmaking, telehealth M&A has settled into a steadier rhythm in 2025. Investors and acquirers are still active, but the focus has shifted from the rapid expansion of the pandemic years to more targeted, strategic transactions.
As of August 29, 2025, 32 telehealth deals have been announced, representing 15% of the 210 eHealth transactions year to date. That marks only a slight increase in volume over the same period in 2024 when 29 deals (18% of 162 eHealth transactions) were recorded.
Telehealth M&A activity in 2025 is slower than the peak years of 2021 to 2023. Deal volume was modest before the surge, with 20 deals in 2017, 12 in 2018, and 24 in 2019. Volume hit a high of 69 in 2021, followed by 55 deals in 2022 (17% of 327 eHealth transactions) and 61 in 2023 (22% of 274). In 2024, deals fell to 42 (17% of 246 eHealth transactions). After the post-pandemic highs and subsequent cooldowns, deal activity in the subsector has stabilized, suggesting that while interest persists, investors are focusing more on strategic growth than opportunistic expansion.
Telehealth ranks as the fourth most active eHealth subsector in 2025, trailing revenue cycle management (39 deals), medical practice management software (35 deals) and patient engagement (34 deals). This is a step down from 2024, when telehealth was the second most active subsector, behind only medical practice management software (59 deals).
Several high-profile deals underscore the strategic priorities shaping telehealth M&A. Teladoc Health, a dominant player with a history of transformative acquisitions like its $18.5 billion purchase of analytics-driven chronic care management firm Livongo Health in August 2020, has been particularly active this year. The company has acquired Catapult Health for $65 million, UpLift for $30 million and Telecare (deal value undisclosed). These moves signal Teladoc’s focus on expanding its service portfolio and strengthening its market position through targeted acquisitions.
Other notable transactions include TTAM Research Institute’s $305 million acquisition of 23andMe, underscoring the convergence of telehealth with personalized medicine, and April Health’s acquisition of Wysa, which adds a digital mental health platform to its behavioral health offerings. Smaller deals such as Treatment.com AI’s $7.7 million purchase of Rocket Doctor and Healthcare Triangle’s $4.2 million acquisition of Niyama Healthcare and Ezovion Solutions reflect a trend toward integrating AI-driven and niche telehealth solutions.
The deal sizes vary widely, from high-value transactions like 23andMe to smaller acquisitions such as Mobile-Health Network Solutions’ $200,000 purchase of Lifepack and UniDoc Health’s $175,000 acquisition of AGNES Connect software. This range suggests a market accommodating both large-scale consolidation and opportunistic buys of specialized technologies.
Private equity (PE) involvement in telehealth M&A remains subdued in 2025, with only three PE-backed deals accounting for 9% of the 32 transactions. These include Brightstar Capital Partners’ acquisition of Analyte Health, Valor Healthcare’s (backed by Trive Capital) purchase of Mission Critical Psychological Services and Avel eCare’s (backed by Aquiline Capital Partners) acquisition of Amwell Psychiatric Care. This may reflect caution around post-pandemic telehealth valuations or a pivot toward less saturated areas such as revenue cycle management, where more than half of deals (56%) were PE-backed.
The telehealth sector is no longer the growth engine it was during the pandemic years, but deal activity remains steady and strategic. Large incumbents like Teladoc continue to refine their portfolios, while behavioral health providers are leveraging telehealth tools to broaden access. The next phase of telehealth M&A will likely be defined less by scale and more by precision. Acquisitions will sharpen offerings, integrate behavioral health and align with shifting patient and provider expectations.
