PARIS | February 7th, 2022 – Drake Star is pleased to release the H2 2021 update of its European Telemedicine report providing insights on key 2021 sector trends and views on the post-COVID effects in 2022:
- Significant increase in number of M&A transactions in 2021 compared to 2020 (+57%): It reflects a natural consolidation after the surge of telemedicine consultations and wider telemedicine adoption during the pandemic. However, most of the activity took place during the first half of the year.
- Two markedly different types of M&A deals: Telemedicine leaders have focused on geographic expansion through the acquisition of generalist platforms in new countries, or have looked at complementing their tech stacks by buying companies hyper-specialized on one single feature of the telemedicine value chain (security, screening…).
- Renewed attention to profitability: Telemedicine operators have been reassessing their value proposition with a renewed attention to profitability, and are particularly sensitive to their target ability to generate synergies rather than just adding sales volume.
- Emerging trends in Health Tech fundraising: The number of investment rounds made public was stable between H1 and H2 2021, but flows concentrated on companies with a strong tech angle rather than generalist telemedicine platforms.
- Relative underperformance of Telemedicine listed companies: They experienced a significant price correction and underperformed tech indexes in 2021 (-28% compared to Nasdaq) as investors remain cautious on the sector's ability to be cash generative.
Drake Star European Telemedicine Team:
Christophe Morvan, Lawrence Giesen
For further inquiries, please contact:
Christophe Morvan
Managing Partner | Drake Star
christophe.morvan@drakestar.com | +33 1 70 08 76 10
Lawrence Giesen
Partner | Drake Star
lawrence.giesen@drakestar.com | +33 1 70 08 76 12
