The shares of Hologic (HOLX) climbed on Tuesday afternoon after the medical device company agreed to be acquired by alternative asset giant Blackstone (BX) and private equity firm TPG (TPG) in an $18.3 billion take-private deal.
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The cash-based arrangement is valued at $76 per share upfront, with an additional $3 per share if the company’s global breast health business meets certain revenue milestones over its next two fiscal years. This brings the potential total value to $79 per share.
The development comes over a month after media reports emerged that both investment firms had renewed their interest in acquiring the Massachusetts-based company, which focuses on women’s health. An earlier buyout offer from both firms valued the company at $16 billion, which was rejected.
Hologic Accepts Acquisition at 46% Premium
However, Hologic’s board has approved the new offer, which represents a 46% premium to HOLX’s closing price on May 23, 2025.
Apart from Blackstone and TPG, sovereign wealth funds Abu Dhabi Investment Authority and the Government of Singapore Investment Corporation have also made minority investment commitments to the deal through a subsidiary and an affiliated outlet, respectively.
Hologic to Delist from Nasdaq, Keep Brand Name
However, the deal, which is expected to close during the first six months of 2026, is still subject to regulatory approvals and other necessary conditions. It must also be approved by Hologic’s shareholders.
If successfully completed, Hologic will be delisted from Nasdaq. However, the company will keep its brand name and continue to operate from its current headquarters in Marlborough, Massachusetts.
The transaction is to be funded by a combination of debt and equity financing from both institutions, with Blackstone noting that it will also allow individual investors to contribute to the acquisition.
Is HOLX a Good Buy?
On Wall Street, Hologic’s shares currently hold a Moderate Buy consensus rating based on six Buys and five Holds assigned by 11 analysts over the last three months. The average HOLX price target of $77.00 also indicates about 4% upside potential from the current level.
