77 transactions borne out of global fertility market since 2009, Livingstone finds – with 2018 being the busiest year

New analysis from the international mid-market M&A firm, Livingstone, reveals there have been 77 transactions in the global IVF and fertility treatment market since 2009. The research which analyses deals in the sector across 12 different countries also shows that M&A activity was at its highest level in 2018 – 22 transactions were completed last year alone accounting for almost 30% of the total across the last 10 years.

The marked increase in interest from investors owes itself to IVF and fertility treatment becoming more accepted and commonplace in global society. More than 8 million babies have been born as a result of IVF and other advanced fertility treatments since 1978*. 

Interest in the sector began to accelerate in 2014, with the US benefiting from the most inbound investment. 19 transactions have been completed in the US, accounting for a quarter of the total number of transactions during the past decade. The UK follows shortly behind the US, having seen a total of 11 transactions completed during the last 10 years, comprising almost 15% of the 77 transactions completed globally. Lastly, Spain and Denmark saw 6 and 5 transactions completed respectively since 2009.

Although the United States is the most active country by volume, no US acquirers made more than two acquisitions over the period, compared with other global consolidators who made more than five investments over the same timeframe. These include NMC Health (UAE and Spain, 12), NextClinics (Germany, 7) and Virtus (Australia and Ireland, 5), comprising 30% of the 77 investments since 2009. 

So far this year, there have already been six completed transactions (three of which were in the UK) across three countries.

Karen Dawaf Harron, Director at Livingstone, says:

“Since 2009, each year has seen over 500,000 babies born from IVF and ICSI**. Changing societal factors, such as increasing levels of infertility and more women delaying motherhood, have been key drivers of the increase in demand for assisted reproduction on a global scale – making it a very favourable time for investors to be tapping into this market. 

“Along with increasing consumer demand, the market’s highly-defensible nature is also raising the appeal for investors. More than 70% of the fertility market is privately funded, shielding it from any public sector constraints, whilst recent innovations in clinical practices have also resulted in more investors setting their sights on the sector. With volumes growing at a CAGR of 10% since 1991, clear opportunities for growth and returns are being laid out, and M&A is solidifying itself as the preferred way of unlocking this growth for many.”