Medical diagnostics firm Hologic is set to change hands. Private equity firms Blackstone and TPG announced on Tuesday that they will acquire Hologic for $18.3 billion, including debt — marking the largest medical device deal in nearly two decades.
Blackstone and TPG agreed to pay $76 per share in cash for all outstanding Hologic shares, implying a premium of nearly 6% to the stock’s last closing price.
Hologic, Inc. is a leading American medical technology company headquartered in Marlborough, Massachusetts. Founded in 1985, the company focuses on developing advanced diagnostic products, medical imaging systems, and surgical instruments, with a strong emphasis on women’s health.
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Hologic is particularly renowned for its innovations in breast cancer detection, leveraging cutting-edge imaging technology and artificial intelligence to improve patient outcomes.
Blackstone Inc. and TPG Inc. are two of the world’s largest and most influential private equity and investment firms. Blackstone, founded in 1985 and headquartered in New York City, specializes in alternative asset management, including private equity, real estate, credit, and hedge funds.
With billions under management, Blackstone invests across a wide range of industries globally, focusing on value creation and long-term growth.
TPG, also founded in 1992 and based in Fort Worth, Texas, is a leading global alternative asset manager with a diverse portfolio including private equity, growth capital, real estate, and credit. TPG emphasizes partnerships with companies to drive operational improvements and innovation.
Both firms have extensive experience investing in healthcare, technology, and industrial sectors. Their collaboration to acquire companies like Hologic demonstrates their commitment to backing innovative firms poised for growth and industry leadership.
Shareholders will also receive a non-tradable contingent value right of up to $3 per share, payable if Hologic meets revenue targets in its Breast Health business in fiscal years 2026 and 2027, bringing the total potential payout to $79 per share.
The offer seems “fair for all parties,” BTIG analyst Ryan Zimmerman said on Tuesday.
“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,” Zimmerman said.
The acquisition of Hologic by Blackstone and TPG marks a significant moment in the medical technology sector, reflecting growing investor confidence in healthcare innovation and diagnostic advancements.
For Hologic, being acquired by two of the world’s leading private equity firms offers an opportunity to accelerate growth and innovation outside the pressures of public markets. Blackstone and TPG bring substantial experience and resources, which could help Hologic expand its product offerings and global reach. The inclusion of contingent value rights tied to future revenue targets demonstrates a shared commitment to the company’s long-term success.
From a broader industry perspective, this deal highlights the increasing interest of private equity in healthcare, driven by the sector’s resilience and potential for transformative innovation. For investors and stakeholders, the transaction presents a positive outlook, suggesting stronger, more focused companies will emerge post-acquisition.