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

Private equity giants Blackstone and TPG are nearing an agreement to acquire Hologic, the maker 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. 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.

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 market for medical technology and diagnostics after a period of rising borrowing costs and subdued dealmaking. The potential acquisition marks a significant shift 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.

Hologic, based in Marlborough, Massachusetts, 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 to the potential deal 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 acquisition. 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.

The buyout would extend a busy year for both private equity firms. Blackstone has stepped up its push into healthcare platforms, while TPG has sought opportunities in diagnostics and biotech services. For both 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 would position both firms to capitalize on the growing women's healthcare market, which has demonstrated consistent demand regardless of economic conditions.

While a final agreement has not been reached and both sides continue to discuss valuation, financing, and governance terms, the advanced negotiations suggest that private equity's appetite for large-scale healthcare deals is once again gathering pace. The potential transaction comes at a time when healthcare companies with reliable revenue streams and strong market positions have become increasingly attractive to investors seeking stability amid economic uncertainty.