Cost containment software reshapes employer healthcare platforms and healthcare technology M&A activity

BGL Healthcare Technology Insider

LOS ANGELES, Feb. 5, 2026 /PRNewswire/ — Employer-sponsored healthcare is shifting from fragmented point solutions to integrated technology platforms that drive real-time cost management and operational efficiency, according to a new industry report released by the Healthcare Technology investment banking team from Brown Gibbons Lang & Company (BGL). Steady medical cost inflation, growing use of specialty drugs, higher out-of-pocket costs for employees, and increasing frustration with managing too many vendors within benefits organizations are all contributing factors driving this shift.

Download and read the BGL Healthcare Technology here: https://bit.ly/BGLHealthcareTechnologyInsider 

Bill Watts, BGL Managing Director: “Accelerating convergence in employer healthcare technology, driven by employers’ desire to reduce vendor complexity, is reshaping investment strategies and driving healthcare technology M&A. Our research shows these dynamics create value for private equity investors, especially in integrated solutions offering tighter integration and real-time cost visibility.”

Inside the report, BGL examines the role of targeted M&A in assembling comprehensive solutions and how employers’ push to reduce vendor complexity is accelerating market convergence and shaping investment strategies across the sector.

Key takeaways include:

• Which employer healthcare subsectors present the most attractive value creation opportunities for private equity investors
• Why cost containment has become the central organizing principle behind employer health technology platforms and acquisition strategies
• What is driving continued convergence across employer healthcare technology as benefits teams seek fewer vendors, tighter integration, and real-time insight into costs

About BGL’s Healthcare Technology Investment Banking Team

Led by Bill Watts & Jamie Arnold, BGL’s Healthcare Technology investment banking team has extensive experience serving public, private, and sponsor-backed companies. Our team has specialized expertise within software as a service (“SaaS”) and digital solutions and is able to serve these clients holistically through its collaboration across BGL’s Healthcare & Life Sciences and Technology verticals. Our team has domain expertise across core subsectors, including consumer health, hybrid delivery, provider- and payor-focused IT, pharma IT, and virtual care/telehealth.

To learn more about our transactions across the healthcare technology sector, click here.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Boston, Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago and Cleveland. The firm is also a founding member of REACH Cross-Border Mergers & Acquisitions, enabling BGL to service clients in 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com. 

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SOURCE Brown Gibbons Lang & Company