Boston Scientific Corp (NYSE:BSX, XETRA:BSX) announced a definitive agreement to acquire medical device company Penumbra (NYSE:PEN) in a cash and stock transaction valuing Penumbra at $374 per share, or approximately $14.5 billion in enterprise value.
Penumbra shares rose almost 12% on the news to about $350, while Boston Scientific shares fell 4.5% to about $90.
Under the agreement, Penumbra shareholders can choose $374 in cash or 3.8721 shares of Boston Scientific stock, with the total consideration expected to be roughly 73% cash and 27% stock.
Boston Scientific plans to fund the $11 billion cash portion through cash on hand and new debt.
The transaction, approved by both companies’ boards, is expected to close in 2026, pending Penumbra shareholder approval and customary conditions.
Boston Scientific said the acquisition will expand its cardiovascular and neurovascular portfolio, providing access to Penumbra’s mechanical thrombectomy and embolization devices, including the Lightning Bolt and Lightning Flash systems.
Cardiovascular diseases remain the leading cause of death worldwide, and the company noted the acquisition positions it in fast-growing segments within the vascular space.
Penumbra reported expected 2025 revenue of around $1.4 billion, representing roughly 17% growth year-over-year.
Boston Scientific said the deal is projected to dilute adjusted EPS by $0.06 to $0.08 in the first full year after closing, with the impact expected to become neutral to slightly accretive in year two and more accretive thereafter.