Market overview and M&A activities in Germany

We are pleased to share our latest report on the market landscape and M&A dynamics in the “digitale Gesundheitsanwendungen” (DiGA) segment. The report provides a comprehensive market mapping, an overview of recent M&A transactions, and insights into exit opportunities for founders and investors.

Executive Summary

The still relatively young market for digital health applications already offers high consolidation potential today and clear exit routes to strategic investors

1. Digital health applications (DiGA) have become a permanent part of the German healthcare landscape since their introduction in 2020. With over 1 million doctor-prescribed or approved applications by the end of 2024 and statutory health insurance (GKV) expenditures of around EUR 234m, a considerable sub-market for digital therapy forms has been established. Applications in the areas of mental health, metabolic diseases, and musculoskeletal disorders are in particularly high demand; together, they account for more than 70% of total service expenditures.
2. Despite continued growth, it is becoming apparent that the market is entering a phase of consolidation and shake-out. Of a total of 72 approved DiGA, 15 have already been removed, and a growing number of providers are in financial distress. Several prominent insolvencies, including Cara Care, aidhere (zanadio), Mika and Kontina, highlight the structural challenges of a market that until now has been sustained primarily by seed funding and limited reimbursement amounts.
3. At the same time, new opportunities are emerging in this phase: for pharmaceutical companies and healthcare service providers, attractive entry options are opening up to systematically integrate digital therapy offerings into existing value chains. Numerous M&A transactions over the past 18 months, such as those involving Selfapy, Sonormed or Mawendo, demonstrate the growing strategic interest of established players in digital therapy platforms.
4. Clear and quickly achievable synergies, for example in sales and development or on the cost side in certification, administration, and support, between individual DiGA providers open up exciting platform-building opportunities for private equity. In addition, the larger market participants already show high margins and strong cash conversion.
5. The market for digital health applications is comparatively young and therefore offers substantially higher growth opportunities than other sectors in healthcare. In addition, many applications are scalable internationally, as other countries have now also created conditions for the reimbursement of digital therapy formats

The DiGA market appears increasingly ready for consolidation, with some investors already building platforms through acquisitions while others continue to expand organically.

For a detailed discussion of our findings, feel free to contact Matthias Holtmeyer or Marcel Deutschmann.