In a significant move in the medical device industry, Boston Scientific has agreed to acquire Penumbra, Inc., a specialized mechanical thrombectomy products company renowned for its innovative approaches to treating serious vascular conditions. Boston Scientific announced the acquisition, valued at roughly $14.5 billion, which will enable the firm to broaden its product offering and capitalize on the growing market for vascular therapies. The transaction will involve a mixture of cash and stock, with Penumbra valued at $374 per share.
The integration primarily aims to enhance patient access to cutting-edge treatments for conditions that can severely restrict blood flow or lead to clots. Boston Scientific's Chairman and CEO, Mike Mahoney, expressed his excitement about the acquisition, noting that he's thrilled to combine the talents and shared values of our teams – including welcoming Penumbra's chairman and chief executive officer, Adam Elsesser, to our board of directors upon close. This sentiment was echoed in the communication by Penumbra on their LinkedIn post, highlighting the potential to expand access to their therapies across the globe through the partnership with Boston Scientific.
Penumbra has been consistent in its revenue growth, projecting a near 22% increase in the fourth quarter and full-year revenue for 2025 around $1.4 billion. The agreement sets out a share value determination, providing Penumbra shareholders the option to elect to receive either cash or shares of Boston Scientific stock, subject to proration. Adam Elsesser has indicated his preference to receive Boston Scientific shares for his Penumbra shares.
To finance this acquisition, Boston Scientific plans to use a combination of existing cash and new debt to cover the $11 billion cash portion. The deal is anticipated to be mildly dilutive to Boston Scientific's adjusted earnings per share in the year following the closure of the deal, but is expected to become neutral to accretive in the second year and increasingly accretive thereafter. Boston Scientific discussed these financial nuances during a conference call, information available on their investor relations website.
The acquisition, pending approval by Penumbra's stockholders and the satisfaction of customary closing conditions, is slated for completion in 2026. In providing legal counsel for this significant merger, Boston Scientific has engaged Allen & Overy Shearman & Sterling LLP and Arnold & Porter Kaye Scholer LLP, while Perella Weinberg Partners and Davis Polk & Wardwell LLP are advising Penumbra, Inc.
