Boston Scientific Corporation has agreed to acquire Penumbra, Inc. in a cash‑and‑stock transaction that values Penumbra at $374 per share, or roughly $14.5 billion in enterprise value. The deal is structured as 73 % cash and 27 % stock, with Boston Scientific financing the $11 billion cash portion through a mix of on‑hand cash and new debt. The transaction is expected to close later in 2026 after regulatory and shareholder approvals.
The acquisition expands Boston Scientific’s cardiovascular portfolio by adding Penumbra’s thrombectomy and neurovascular product lines, re‑entering the neurovascular market that the company had divested a decade ago. The move positions Boston Scientific against competitors such as Medtronic and Abbott and taps a fast‑growing vascular segment that is driven by an aging population and rising prevalence of stroke and peripheral artery disease.
Financially, Boston Scientific anticipates the deal to be dilutive to adjusted earnings per share by $0.06 to $0.08 in the first full year after closing, neutral to slightly accretive in the second year, and more accretive thereafter. The new debt will lift leverage to about 3.8× EBITDA, a level that remains within investment‑grade thresholds but represents a notable increase from the company’s historical norms. Boston Scientific’s cash on hand and the new debt issuance will fund the cash component while preserving flexibility for future capital allocation.
Penumbra’s recent performance underpins the premium price. Preliminary 2025 revenue reached $1.4 billion, up 17.3 % to 17.5 % from the prior year, and Q4 2025 revenue was $383.0 million to $384.8 million, a 21.4 % to 22.0 % increase. Gross margins hovered around 67 % to 68 %, reflecting strong pricing power and efficient manufacturing. These metrics demonstrate Penumbra’s robust growth trajectory and justify the 19 % premium paid by Boston Scientific.
Market reaction to the announcement was mixed. Penumbra’s shares surged roughly 12 % on the news, driven by the 19 % premium and the strategic fit with Boston Scientific’s portfolio. Boston Scientific’s shares fell about 5 % as investors weighed the large cash outlay, the new debt, and the near‑term EPS dilution that the deal will impose.
Management commentary highlighted the strategic fit and financial rationale. Boston Scientific CEO Mike Mahoney called the transaction a “home run” and “financially compelling,” emphasizing the opportunity to enter fast‑growing vascular segments and expand access to new technologies. Penumbra CEO Adam Elsesser expressed gratitude for the partnership and noted that he will join Boston Scientific’s board upon closing, underscoring the collaborative intent of the merger.
The integration of Penumbra presents both opportunities and risks. While the complementary product lines promise revenue and margin synergies, the increased leverage and the need to align two corporate cultures and operational systems pose integration challenges. Boston Scientific has indicated it will maintain strong credit ratings and will monitor debt levels closely to preserve financial flexibility.
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