Boston Scientific Agrees to Acquire Penumbra for $14.5 Billion in Cash and Stock

Boston Scientific has agreed to acquire Penumbra, the Alameda, California, maker of devices that remove blood clots, in a cash and stock transaction that values Penumbra at $374 per share and reflects an enterprise value of about $14.5 billion, the companies said in a joint announcement on Thursday, January 15.

"Penumbra is a well-established company with an experienced, high-performing team and this acquisition offers Boston Scientific an opportunity to enter new, fast-growing segments within the vascular space," said Mike Mahoney, Boston Scientific's chairman and chief executive. Penumbra chairman and chief executive Adam Elsesser is to join Boston Scientific's board when the deal closes.

Deal terms

Penumbra stockholders can elect to receive $374 in cash or 3.8721 Boston Scientific shares for each Penumbra share, subject to proration so that about 73% of the total consideration is paid in cash and about 27% in stock, according to the release. The share ratio is based on Boston Scientific's volume-weighted average price over the 10 trading days to January 13. Elsesser has said he will take Boston Scientific shares for all of his Penumbra stock.

Boston Scientific expects to fund the cash portion, about $11 billion, with cash on hand and new debt. The company said the deal would reduce its adjusted earnings per share by 6 to 8 cents in the first full year after closing, be neutral to slightly accretive in the second year and be more accretive after that.

Both boards have approved the agreement. The transaction is expected to close in 2026, subject to approval by Penumbra stockholders and other customary closing conditions.

What Penumbra sells

Penumbra's vascular products include the Lightning Bolt and Lightning Flash computer assisted vacuum thrombectomy systems, which remove clots blocking arteries, veins and pulmonary vessels, and a peripheral embolization system used to stop bleeding or close blood vessels, according to the release. Its neurovascular products cover access, stroke revascularization and neuro embolization.

Penumbra said it expects to report fourth-quarter revenue growth of about 21.4% to 22.0% and full-year 2025 revenue of about $1.4 billion, up roughly 17.3% to 17.5% from the year before. Those figures are the company's preliminary expectations.

Analysts' view

BTIG analyst Ryan Zimmerman called the price fair, putting it about 19% above Penumbra's share price on Wednesday, and said the deal would give Boston Scientific a growth asset in thrombectomy and embolization, MedTech Dive reported.

RBC Capital Markets analyst Shagun Singh wrote that the deal was not surprising and that Penumbra "has been considered a take-out candidate for some time now," according to MedTech Dive. Zimmerman said Stryker's $4.9 billion acquisition of Inari Medical, another thrombectomy device maker, last year had made Penumbra a more attractive target.

Perella Weinberg Partners is Penumbra's exclusive financial adviser and Davis Polk & Wardwell its legal adviser. A&O Shearman and Arnold & Porter are advising Boston Scientific on legal matters, according to the release.