By Mariam Sunny
(Reuters) -Medical diagnostics firm Hologic has agreed to be acquired by Blackstone and TPG in a deal valued at up to $18.3 billion, it said on Tuesday, marking one of the largest healthcare take-private transactions this year.
The company, which specializes in women's health diagnostics, including breast and cervical cancer screening, has grappled with waning demand since the COVID-19 pandemic, as well as rising competition.
Under the agreement, Blackstone and TPG will pay $76 apiece
in cash to buy all outstanding Hologic shares, implying a premium of nearly 6% to the stock's last close.
Hologic shares were up nearly 4% in early trading. They have gained 13.5% since Reuters reported last month that Blackstone and TPG revived their interest after intermittent talks between the parties over the past year.
Shareholders are also eligible for a non-tradable right to receive up to $3 per share, contingent on certain global revenue goals for its breast health business in fiscal years 2026 and 2027, bringing the total potential payout to $79 per share.
In May, the Financial Times reported that Hologic had rejected a $70 to $72 per share offer from the private equity firms.
The offer seems "fair for all parties," BTIG analyst Ryan Zimmerman said on Tuesday, adding the deal will be generally positive for the medtech sector.
"We view this as generally positive for the sector as it adds to the pool of acquirers but also will result in stronger businesses if/when they re-emerge as public assets," Zimmerman said.
The deal, expected to close in the first half of 2026, includes significant minority investments from a unit of the Abu Dhabi Investment Authority and an affiliate of GIC, Hologic said.
(Reporting by Padmanabhan Ananthan, Sneha S K and Mariam Sunny in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila)
