Blackstone and TPG Approach $17 Billion Acquisition of Hologic in Major Healthcare Buyout

Private equity giants Blackstone and TPG are nearing an agreement to acquire Hologic, the manufacturer of diagnostic and medical imaging equipment for women's health, in a deal that could value the company at more than $17 billion including debt. According to people familiar with the matter, the firms are finalizing terms that would price Hologic shares at more than $75 apiece, representing a premium to recent trading levels that reflects strong investor appetite for healthcare assets with recurring revenue streams.

A formal announcement could come within days, though negotiations remain fluid and could still collapse. If completed, the transaction would rank among the largest leveraged buyouts in the healthcare sector in recent years, underscoring private equity's renewed confidence in the medical technology and diagnostics market after a period of rising borrowing costs and subdued dealmaking. This development signals a significant shift in investment patterns within the healthcare industry, particularly for companies with stable revenue streams and technological innovation.

The potential acquisition marks a pivotal moment for Hologic, which has spent the past decade transforming itself from a cyclical imaging business into a diversified provider of diagnostic products and lab instruments, including widely used cancer screening tests. Based in Marlborough, Massachusetts, the company has been a steady performer in the post-pandemic diagnostics market, benefiting from its reputation for high-margin products and reliable cash flow. Market reaction has been positive, with Hologic shares rising roughly 2% on Friday and climbing an additional 6% in after-hours trading following Bloomberg's report of the potential deal.

The rally follows an earlier move sparked by 9fin's report of a $9 billion financing package being assembled by Blackstone and TPG to fund the acquisition. This substantial financing arrangement demonstrates the confidence both private equity firms have in Hologic's business model and growth potential. The buyout would extend a busy year for both firms, with Blackstone stepping up its push into healthcare platforms while TPG has sought opportunities in diagnostics and biotech services.

For both investment firms, Hologic represents an appealing mix of stable cash generation and technological innovation in women's health, an area seen as resilient to broader economic swings. The acquisition highlights the growing importance of specialized healthcare companies that combine consistent revenue with innovative product development. While a final agreement has not been reached and both sides continue to discuss valuation, financing, and governance terms, the talks suggest that private equity's appetite for large-scale healthcare deals is once again gathering pace after a period of market uncertainty.

The potential transaction carries significant implications for the healthcare industry, particularly in the women's health sector where consolidation could accelerate. It also signals renewed investor confidence in healthcare companies with strong diagnostic portfolios and reliable revenue streams. The deal's size and structure could set precedents for future healthcare acquisitions, potentially influencing how private equity firms approach similar investments in the medical technology space.