Boston Scientific to Acquire Penumbra in $14.5B Deal

Boston Scientific Announces $14.5 Billion Penumbra Acquisition

Boston Scientific has confirmed its plan to acquire medical technology firm Penumbra in a significant deal valued at approximately $14.5 billion. This strategic acquisition is set to broaden Boston Scientific's portfolio of cardiovascular devices.

Expanding Cardiovascular Market Presence

The move reflects a growing trend among medical technology companies to invest heavily in their cardiovascular franchises, driven by consistently strong market demand. The acquisition grants Boston Scientific access to Penumbra's specialized devices, which are used to clear blood clots in minimally invasive procedures for conditions like stroke and pulmonary embolism.

Financial Details and Market Reaction

The deal values Penumbra at $374 per share, representing a premium of about 19.3% over its last closing price. Following the announcement, Penumbra’s shares saw a significant jump of over 10% in premarket trading. Boston Scientific anticipates that integrating Penumbra's product line will enhance its revenue and profit margins over time.

Transaction Outlook

The acquisition is a long-term strategic play, with the transaction expected to be finalized in 2026. This timeline allows for regulatory approvals and integration planning between the two companies.

FAQ

Q: How much is Boston Scientific paying for Penumbra?
A: The deal is valued at approximately $14.5 billion, or $374 per share.

Q: Why is Boston Scientific acquiring Penumbra?
A: To expand its portfolio of cardiovascular devices, particularly those used for removing blood clots.

Q: When will the acquisition be completed?
A: The transaction is expected to be completed in 2026.

Source: Investing.com