US buyout giants Blackstone and TPG have agreed to acquire healthcare technology company Hologic in a $18.3bn take-private transaction, the largest in the healthcare sector since 2006, according to a report by the Financial Times.
The deal reflects the broader surge in private equity activity, with top firms seeking to deploy more than $2tn in unallocated capital amid historically low financing costs. Hologic, which develops diagnostic technologies for breast cancer, sexual health, and Covid-19 testing, has struggled to sustain investor interest following pandemic-driven gains.
Under the terms of the agreement, Hologic shareholders will receive $76 per share in cash, with an additional $3 per share contingent on performance targets, representing a 46% premium to the company’s pre-offer trading price.
Financing for the deal is being led by Citi and Bank of America, arranging a $12bn debt package for the acquisition. The use of banks for leveraged financing marks a shift from previous years, as lenders re-enter the private equity market following the Federal Reserve’s rate hikes in 2022-2023, offering more favourable terms than private credit funds.
The Hologic takeover follows a wave of large-scale buyouts, including Silver Lake and Affinity Partners’ $55 billion acquisition of Electronic Arts, and Thoma Bravo’s take-privates of Boeing’s software unit and HR software firm Dayforce, each exceeding $10 billion. These transactions have been underpinned by lower borrowing costs and robust investor demand for private equity deals.
