Hologic to Go Private in $18.3 Billion Acquisition by Blackstone and TPG

In a significant development for the medical technology sector, Hologic, a leading manufacturer of diagnostic tools, has agreed to be acquired by private equity firms Blackstone and TPG in a deal valued at up to $18.3 billion. The transaction, which will take the company private, marks a pivotal moment in the industry and reflects growing interest from private equity in the healthcare technology space.

Deal Structure and Financial Details

The acquisition offer stands at $76 per share, with an additional performance-based payment of up to $3 per share tied to Hologic's breast health business revenue goals for fiscal years 2026 and 2027. This represents a substantial 46% premium over Hologic's closing price on May 23, 2025, the last trading day before rumors of a potential deal began circulating.

The transaction is backed by a robust financial structure, including:

• A debt financing commitment from a consortium of major banks including Citi, Bank of America, Barclays, Royal Bank of Canada, and SMBC.
• Equity commitments from funds managed by Blackstone and TPG.
• Significant minority investments from a subsidiary of the Abu Dhabi Investment Authority and an affiliate of GIC, Singapore's sovereign wealth fund.

Impact on Hologic's Operations and Market Position

Despite the change in ownership, Hologic is set 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 Nasdaq upon completion of the deal.

Industry analysts, such as Needham's Mike Matson, view the offer as fair, noting that Hologic's slower revenue growth and potential antitrust concerns due to its dominant position in the U.S. mammography market might discourage competing bids from other medical technology firms.

Timeline and Regulatory Considerations

The acquisition is expected to close in the first half of 2026, subject to shareholder and regulatory approvals. Hologic's board has unanimously approved the deal, which includes a 45-day "go shop" period allowing the company to consider alternative proposals.

This transaction follows previous attempts by Blackstone and TPG to take Hologic private, with earlier reports indicating a rejected $16 billion offer in May 2025. The successful conclusion of these negotiations underscores the persistent interest of private equity in acquiring established players in the medical technology sector.