Private equity firms Blackstone and TPG have announced their acquisition of medical diagnostics company Hologic for $18.3 billion, marking a significant milestone in the healthcare sector.
Medical diagnostics firm Hologic is poised for a major transition as private equity giants Blackstone and TPG have announced their intention to acquire the company for $18.3 billion, including debt. This deal represents the largest acquisition in the medical device sector in nearly two decades.
The agreement stipulates that Blackstone and TPG will pay $76 per share in cash for all outstanding shares of Hologic, reflecting a nearly 6% premium over the stock’s last closing price.
Headquartered in Marlborough, Massachusetts, Hologic, Inc. is a prominent American medical technology company established in 1985. The firm specializes in developing advanced diagnostic products, medical imaging systems, and surgical instruments, with a particular focus on women’s health.
Hologic is especially recognized for its innovations in breast cancer detection, utilizing cutting-edge imaging technology and artificial intelligence to enhance patient outcomes.
Blackstone Inc. and TPG Inc. are among the largest and most influential private equity and investment firms globally. Founded in 1985 and based in New York City, Blackstone specializes in alternative asset management, encompassing private equity, real estate, credit, and hedge funds. With billions of dollars under management, Blackstone invests across a diverse array of industries worldwide, concentrating on value creation and long-term growth.
TPG, established in 1992 and headquartered in Fort Worth, Texas, is a leading global alternative asset manager with a varied portfolio that includes private equity, growth capital, real estate, and credit. The firm emphasizes partnerships with companies to foster operational improvements and innovation.
Both Blackstone and TPG possess extensive experience in investing within the healthcare, technology, and industrial sectors. Their collaboration to acquire Hologic underscores their commitment to supporting innovative firms that are well-positioned for growth and industry leadership.
In addition to the cash offer, shareholders will receive a non-tradable contingent value right of up to $3 per share, contingent upon Hologic achieving revenue targets in its Breast Health business for fiscal years 2026 and 2027. This provision brings the total potential payout to $79 per share.
BTIG analyst Ryan Zimmerman commented on the deal, stating that the offer appears “fair for all parties.” He added, “We view this as generally positive for the medtech sector as it adds to the pool of acquirers but also will result in stronger businesses if/when they re-emerge as public assets.”
The acquisition of Hologic by Blackstone and TPG marks a pivotal moment in the medical technology landscape, reflecting a growing investor confidence in healthcare innovation and diagnostic advancements.
For Hologic, being acquired by two of the world’s leading private equity firms presents an opportunity to accelerate growth and innovation away from the pressures of public markets. The substantial experience and resources that Blackstone and TPG bring could facilitate Hologic’s expansion of product offerings and global reach. The inclusion of contingent value rights tied to future revenue targets indicates a shared commitment to the company’s long-term success.
From a broader industry perspective, this transaction highlights the increasing interest of private equity in the healthcare sector, driven by its resilience and potential for transformative innovation. For investors and stakeholders, this deal presents a positive outlook, suggesting that stronger, more focused companies will emerge in the aftermath of the acquisition.
Source: Original article