Boston Scientific to Buy Penumbra for $14.5B in Med-Tech Strike
Deal at a 19% premium comes as Penumbra reveals blowout preliminary revenues, signaling strong momentum in the neurovascular device market.
Boston Scientific (NYSE: BSX) has agreed to acquire Penumbra, Inc. (NYSE: PEN) in a landmark cash-and-stock deal valued at approximately $14.5 billion, a decisive move to dominate the high-growth market for devices treating strokes and other vascular conditions.
The announcement sent waves through the medical technology sector, as the deal values Penumbra at $374.00 per share. This represents a significant 19.3% premium to the company’s prior day's closing price. The acquisition was unveiled alongside a stunning preliminary revenue announcement from Penumbra, which reported fourth-quarter sales that far surpassed Wall Street estimates, underscoring the company’s robust health and strategic value.
Under the terms of the agreement, Penumbra shareholders can elect to receive either $374.00 in cash or 3.8721 shares of Boston Scientific stock for each Penumbra share they hold, subject to proration. The move reflects Boston Scientific’s aggressive strategy to expand its portfolio with innovative, high-growth assets.
Shares of Penumbra surged in response to the news, trading near the acquisition price. The $374.00 valuation marks a substantial premium over the stock's recent 52-week high of $325.02, rewarding shareholders who have backed the company's pioneering work in minimally invasive treatments.
For Boston Scientific, a global medical device giant with a market capitalization of nearly $140 billion, the acquisition is a strategic masterstroke. It immediately positions the company as a leader in the fast-growing neurovascular and peripheral vascular markets, where Penumbra has carved out a formidable reputation. Penumbra is renowned for its innovative catheter systems used for mechanical thrombectomy—a procedure to remove blood clots from the brain after a stroke—as well as devices for peripheral arteries and veins. According to its company profile, Penumbra has built its business on advancing patient care through technological innovation.
This deal brings Penumbra's high-demand product lines, including its advanced Lightning and Ruby systems for clot and emboli removal, under the vast global umbrella of Boston Scientific. The strategic fit is clear, as Boston Scientific seeks to bolster its presence in specialized, high-margin therapeutic areas.
Further sweetening the pot, Penumbra simultaneously announced preliminary fourth-quarter revenue of approximately $383.0 million. The figure crushed analyst consensus estimates of $340.8 million by a remarkable 12.4%, signaling powerful demand for its products and exceptional operational execution. This strong performance provides a compelling justification for the lofty premium Boston Scientific has agreed to pay and suggests Penumbra is being acquired at the peak of its powers.
Analysts see the acquisition as both defensive and offensive—it prevents a competitor from snapping up a key innovator while cementing Boston Scientific's leadership in cardiovascular and neurological care. With a strong analyst consensus already favoring Penumbra—with 13 'buy' and 4 'strong buy' ratings prior to the deal—the acquisition is seen as a validation of the company's technology and market strategy.
"The combination of Boston Scientific’s global reach and Penumbra’s specialized innovation creates a powerhouse in the treatment of vascular disease," a senior analyst at a major investment bank noted. "This is a direct play on the growing demand for less invasive surgical procedures and the aging global population, which is more susceptible to conditions like stroke."
The acquisition is the culmination of Penumbra’s steady rise from a niche player to a recognized leader in healthcare technology. The company, headquartered in Alameda, California, has consistently delivered strong revenue growth, driven by a relentless pace of product launches and expansion into new treatment areas.
The deal is subject to customary closing conditions, including approval by Penumbra’s shareholders and regulatory clearances. The companies expect the transaction to close in the second half of the year. Once completed, the integration of Penumbra will significantly broaden Boston Scientific's portfolio, creating a more comprehensive offering for hospitals and specialists treating complex vascular blockages.