Singapore M&A 2025–26: Shift to Mid-Market Healthcare & Digital Infrastructure Deals

The recent M&A landscape in Singapore shows nuanced shifts away from blockbuster deals toward more targeted, mid-sized transactions. According to London Stock Exchange Group (LSEG), Singapore saw US$35.2 billion in M&A activity in the first half of 2025, up 3.2% from the same period in 2024—despite a sharp drop in deals exceeding US$5 billion. This indicates an environment where investors and strategic acquirers remain active, yet are methodical and risk-aware.

Healthcare has emerged as a hotspot of consolidation. Fueled by Singapore’s ageing population, medical service providers, specialist groups, and nursing home operators are particularly active in both domestic and outbound deals. Notable moves include the proposed privatisation of Econ Healthcare (worth nearly US$88 million), and heightened activity by groups seeking to acquire medical claims administrators in neighbouring countries such as Indonesia. Across Southeast Asia, healthcare M&A is rising as buyers seek stable, high-growth sectors amidst broader macroeconomic pressure.

Digital infrastructure—particularly data centres—is another key trend. Singapore’s strategic regulatory environment, green standards like SS 715:2025, and ambitious national investment in AI and enterprise compute are driving investor interest in this asset class. For example, KKR’s impending US$6.4 billion purchase of ST Telemedia Global Data Centres (though one of the rare mega deals in 2025) reflects this pull.

Private equity (PE) and finance sponsors are adjusting strategies. While overall deal volumes, especially in mega deals, have dropped, mid-market PE activity remains resilient. Deals of US$1-3B are increasing, and financial sponsors are eager to deploy dry powder and exit mature investments. Meanwhile, global trends in healthcare show cooling in value in 2025 (US$46B vs US$62B in 2024), but strong expectations for rebound in 2026—particularly in subsegments less affected by regulatory risk, such as biotech services, digital platforms, and MedTech.

Regulatory and environmental considerations are increasingly decisive. New data centre efficiency standards (SS 715), sustainability norms, and scrutiny over cross-border deals are influencing deal structuring and timing. Additionally, geopolitical uncertainties and trade policies are softening appetite for very large or complex cross-border transactions, hence the pivot to smaller, more manageable deals inland.

Strategic implications: For investors and corporate acquirers, targeting mid-market opportunities, especially in healthcare and infrastructure, could offer attractive returns with lower execution risk. PE funds may find fertile ground in bolt-on deals and carve-outs. Policymakers might need to maintain clarity in regulations and ensure incentives for sustainability to keep Singapore competitive; meanwhile, firms should monitor cost inflation in healthcare and rising operating costs in infrastructure assets.

Open questions: Whether 2026 will see a return of mega-deals once regulatory and global headwinds ease; how sustainability and energy constraints will limit digital infrastructure expansion; how valuation multiples will adjust as interest rates and exit markets fluctuate; and how cross-border healthcare M&A will navigate regulatory divergence across Southeast Asia.