Private equity healthcare deals fall to 135 in third quarter

Private equity firms and their sponsored companies announced 135 healthcare M&A transactions in the third quarter of 2026, Levin Associates said in an Oct. 21 press release citing LevinPro HC data.

The total was down from 155 deals in the second quarter and 190 in the third quarter of 2025, while sponsor-backed buyers accounted for about 33% of 415 announced healthcare deals.

Disclosed spending by private-equity buyers reached nearly $9.14 billion across 10 transactions, according to the release. The largest disclosed purchase price was KKR’s $5.7 billion acquisition of Integer Holdings, equal to about 62% of that disclosed spending total, according to Atlas360 calculations.

“PE activity cooled in Q3:26, with volume down from both the prior quarter and last year, yet private equity still drove roughly one-third of all healthcare deals,” Avery Swett, associate editor at Irving Levin Associates, said in the press release. “Buyers appear more willing to sit on their hands than chase marginal assets, which could set up a healthier pipeline once conditions improve.”

Healthcare M&A refers to mergers and acquisitions involving healthcare companies and assets. LevinPro HC defines the private-equity buyer group as private equity firms and their sponsored companies.

Physician medical groups drew the most sponsor interest, with 53 announced deals, or more than 39% of private-equity healthcare activity in the quarter, Levin said. Dental practices represented 26 of those physician-group transactions, followed by dermatology with seven, and eye care and cardiology with three each.

Life Sciences R&D was the second-most active sponsor-backed sector, with 15 transactions. That was up from 10 in the second quarter of 2026 and 10 in the third quarter of 2025, according to the release. Contract development and manufacturing organizations accounted for eight of those deals, followed by clinical-trials businesses with four and contract research organizations with three.

Private-equity buyers also announced 11 deals each in Other Services, eHealth and Medical Outpatient Buildings, Levin said. They announced nine Behavioral Health Care transactions, seven Home Health & Hospice deals and six Medical Devices deals.

Heartland Dental and Specialized Dental Partners were the most active private-equity-backed buyers named in the release. Heartland Dental acquired practices in Tennessee, Nevada, Virginia and Florida, while Specialized Dental Partners bought practices in Texas, Georgia and North Carolina.

Integer, based in Plano, Texas, is described by Levin as a large medical-device outsource manufacturer serving markets including cardiac, neuromodulation, vascular, portable medical, advanced surgical and orthopedics. Levin cited Integer’s most recent annual filing as showing 2025 revenue of $1.85 billion and EBITDA, or earnings before interest, taxes, depreciation and amortization, of nearly $292.4 million.

Levin said the quarterly results are published in The Health Care M&A Report, part of LevinPro HC, a research intelligence platform published by Irving Levin Associates.

Source: Press release, Levin Associates via GlobeNewswire, Oct. 21, 2026