The healthcare software sector continues to undergo consolidation. According to Capstone Partners, deal activity in the healthcare IT sector increased for the third consecutive year in 2024, with over 260 transactions recorded globally. PwC’s H1 2025 report also demonstrated that while deal volumes in the space had fallen, deal values increased by about 50%. Strategic buyers are pursuing integrated platforms, while private equity firms are backing roll-up strategies focused on clinical and administrative tools with established traction.

This trend reflects a shift in how healthcare providers approach technology procurement. Buyers are prioritising scalable platforms over standalone solutions. They are looking for vendors that can offer broad functionality, robust interoperability, and enterprise-grade compliance. As digital front doors, virtual consultations, and remote patient monitoring become standard, the ability to integrate across clinical workflows is critical. Scale is not just about efficiency. It is about staying relevant in an environment shaped by regulation, security, and demand for outcomes.

Aalto Capital recently advised on the sale of Induction Healthcare to VitalHub, a Toronto-listed acquirer of healthtech platforms. Induction’s suite of NHS-trusted applications is now part of a broader group supporting patient engagement and care coordination across the UK and Canada. The transaction reflects what buyers are targeting today: proven technology, embedded customer relationships, and compliant infrastructure that can be deployed across systems.

Investors are increasingly focused on healthtech platforms with recurring revenues, modular product design, and strong clinical relevance. Founders with a clear product-market fit but limited scale may find that now is the right time to engage with strategic partners. The market is rewarding businesses that solve real problems in complex care settings.

The Induction and VitalHub combination is a clear example of this thesis. It shows how UK software companies can become part of larger platforms while continuing to drive real impact across the healthcare system.

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