Hologic Set to Go Private in $18.3 Billion Deal with Blackstone and TPG

In a major shakeup for the medical technology sector, Hologic, a leading manufacturer of diagnostic tools, has agreed to be acquired by private equity giants Blackstone and TPG in a deal valued at up to $18.3 billion. The transaction, announced on Tuesday, marks one of the largest take-private deals in the medtech industry in recent years.

Deal Structure and Financial Details

The acquisition offers Hologic shareholders $76 per share in cash, with the potential for an additional $3 per share contingent on the company meeting specific revenue targets for its breast health business in fiscal years 2026 and 2027. This represents a substantial 46% premium over Hologic's closing price on May 23, the last trading day before rumors of a potential deal began circulating.

The transaction is backed by a robust financial structure, including debt financing commitments from a consortium of major banks such as Citi, Bank of America, Barclays, Royal Bank of Canada, and SMBC. Additionally, the deal features significant minority investments from sovereign wealth funds, including a subsidiary of the Abu Dhabi Investment Authority and an affiliate of GIC, Singapore's sovereign wealth fund.

Impact on Hologic's Operations and Brand

Despite the change in ownership, Hologic is expected to maintain its brand identity and current headquarters in Marlborough, Massachusetts. The company, known for its mammography machines and cervical cancer screening tests, will be delisted from the Nasdaq upon completion of the deal, which is anticipated to close in the first half of 2026, subject to shareholder and regulatory approvals.

Market Reaction and Analyst Insights

The announcement follows months of speculation about Blackstone and TPG's interest in Hologic. Previous reports by the Financial Times in May suggested an initial $16 billion offer, which was reportedly rejected by Hologic. The renewed interest and higher valuation underscore the perceived value of Hologic's assets in the medical diagnostics market.

Analyst Mike Matson from Needham commented on the deal, stating, "We think that this is a fair price for [Hologic] and that other bidders are unlikely." Matson pointed to Hologic's slower revenue growth and potential antitrust concerns due to its dominant position in the U.S. mammography market as factors that might discourage competing bids from other medtech firms.