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European Telemedicine Update | February 2022

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

 

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