Private equity firms Blackstone and TPG have agreed to acquire women’s health diagnostics company Hologic in a deal valued at $18.3 billion including debt — the largest medical device transaction in nearly 20 years. The two firms will pay $76 per share in cash, representing a 6% premium to Hologic’s last close, with shareholders also eligible for up to $3 per share in additional payouts if revenue targets are met. The buyout highlights how lower borrowing costs and improved financing conditions are enabling larger leveraged deals, particularly as investors seek value in underpriced sectors like healthcare.
Following the transaction, Hologic will be delisted from Nasdaq. The firm, known for its innovations in breast and cervical cancer diagnostics, is expected to accelerate R&D and strategic acquisitions under private ownership, free from quarterly market pressures. Citigroup, Bank of America, Barclays, Royal Bank of Canada, and Sumitomo Mitsui Banking Corp are providing debt financing for the deal, which underscores renewed confidence in large-scale private equity activity.
Source: Reuters
