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 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, according to people familiar with the matter. The firms are said to be 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 the negotiations remain fluid and could still fall apart.

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. This development 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. The company's evolution positions it as an attractive target for private equity firms seeking stable healthcare investments.

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 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, indicating strong financial backing for the proposed transaction.

The buyout would extend a busy year for both private equity firms, with Blackstone stepping 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 demonstrate private equity's growing interest in healthcare segments that combine technological advancement with predictable revenue models.

While a final agreement has not been reached and both sides continue to discuss valuation, financing, and governance terms, the advanced talks suggest that private equity's appetite for large-scale healthcare deals is once again gathering pace. The potential acquisition comes at a time when healthcare companies with strong diagnostic portfolios and women's health focus are increasingly viewed as valuable assets in the investment landscape. The deal's significance extends beyond its substantial financial value to signal broader market trends in healthcare investment strategies and private equity's renewed focus on stable, innovation-driven medical technology companies.