Private equity firms Blackstone and TPG have agreed to acquire medical diagnostics company Hologic for $18.3 billion including debt, marking the largest medical device transaction since Boston Scientific’s $27 billion purchase of Guidant in 2006. The deal, announced on Tuesday, values Hologic at $76 per share, representing a 6% premium over its last closing price.
Hologic, which specialises in women’s health diagnostics such as breast and cervical cancer screening, is expected to be delisted from Nasdaq once the transaction receives regulatory approval. In addition to the cash offer, shareholders will receive a non-tradable contingent value right of up to $3 per share, payable if revenue targets are met in Hologic’s Breast Health business for fiscal years 2026 and 2027, bringing the total potential payout to $79 per share.
The acquisition highlights how private equity firms are capitalising on undervalued healthcare assets while technology companies continue to attract high valuations. Analysts note that the deal also benefits from improving credit markets, with borrowing costs declining and lenders willing to fund larger transactions. Debt financing for the deal has been committed by Citigroup, Bank of America, Barclays, Royal Bank of Canada, and Sumitomo Mitsui Banking Corp, in addition to equity contributions from Blackstone and TPG.
Insiders say the firms plan to accelerate research, pursue acquisitions, and develop new products without the constraints of quarterly earnings pressure. Hologic’s innovative, clinician-preferred products provide strong market share and pricing power, which analysts view as a key driver of the company’s attractiveness. BTIG analyst Ryan Zimmerman said the offer is “fair for all parties” and noted that the transaction could be “generally positive for the medtech sector,” potentially strengthening companies that return to public markets later.
The deal is expected to close in the first half of 2026 and includes minority investments from a unit of the Abu Dhabi Investment Authority and an affiliate of GIC. Goldman Sachs advised Hologic, while Citi advised the Blackstone-TPG consortium. Legal counsel was provided by Wachtell, Lipton, Rosen & Katz for Hologic and Kirkland & Ellis LLP and Ropes & Gray for the buyers.
