Boston Scientific
(NYSE: BSX)
today announced a definitive agreement to acquire cardiovascular disease treatment device maker Penumbra (NYSE:PEN).
The deal values Penumbra at $374 per share, reflecting an enterprise value of approximately $14.5 billion. Penumbra shares currently trade at approximately $313.43 apiece ahead of the market opening today. Boston Scientific plans to execute a cash and stock transaction to complete the deal. It expects to close the acquisition this year, subject to Penumbra stockholder approval and other closing conditions.
It marks the second Boston Scientific acquisition this week, following its deal to buy Valencia Technologies.
Alameda, California–based Penumbra develops a range of devices for treating stroke and other blood clots in the body, including neuro access catheters and computer-assisted thrombectomy systems.
“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, chair and CEO, Boston Scientific. “I’m thrilled to combine the talents and shared values of our teams – including welcoming Penumbra’s chairman and chief executive officer, Adam Elsesser, to our board of directors upon close. The addition of Penumbra can expand access for these novel technologies to more patients and customers around the world, further enhancing our revenue and margins over time with proven offerings that have a history of growth and innovation.”
More about Penumbra and its acquisition by Boston Scientific
Penumbra’s comprehensive portfolio includes differentiated devices that treat conditions like pulmonary embolism, stroke, deep vein thrombosis, acute limb ischemia, heart attack and aneurysms.
The company’s products include the Lightning Bolt and Lightning Flash computer-assisted vacuum thrombectomy (CAVT) systems. Its vascular portfolio also includes a minimally invasive peripheral embolization system. It designed the system to stop blood flow to control hemorrhaging and bleeding or to close blood vessels.
Penumbra’s neurovascular offerings include differentiated products for access, stroke revascularization and neuro embolization.
The company expects to deliver full-year 2025 revenue of approximately $1.4 billion. That marks approximately 17.3% to 17.5% over the previous year. Boston Scientific also noted that the company’s multi-year R&D plan and ongoing clinical programs could support future growth.
Under the agreement — approved by the boards of both companies — Penumbra stockholders can elect to receive $274 in cash or 3.8721 shares of Boston Scientific common stock, subject to proration. The companies expect the total transaction consideration to feature about 73% in cash and about 27% in Boston Scientific shares. Elsesser indicated his choice to receive Boston Scientific shares for all his Penumbra shares.
“Our decades-long development of therapies for challenging medical conditions has focused on deep innovation for complex diseases so that we can offer physicians novel solutions to transform patient care,” said Adam Elsesser. “I am grateful for the amazing people who have contributed to this work and look forward to uniting our efforts and shared values as we come together with Boston Scientific.”
Boston Scientific expects to finance the approximately $11 billion cash portion of the transaction with a combination of cash on hand and new debt. It anticipates a dilutive impact to adjusted EPS of about 6¢ to 8¢ in the first year, then an accretive impact thereafter. The company expects a dilutive impact to GAAP earnings in the first full year after close, then a less dilutive or increasingly accretive impact thereafter.
The analysts’ take on the deal
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang reiterate their “Buy” rating for Boston Scientific after the agreement. They said the deal allows it to enter new, high-growth adjacencies.
Boston Scientific already offers therapies for deep vein thrombosis and pulmonary embolism, including the EKOS endovascular system. However, the analysts emphasized that this technology uses a different mode of action than Penumbra’s mechanical thrombectomy technology.
In Neurovascular, the analysts expect Penumbra’s stroke product portfolio to complement Boston Scientific’s transcarotid artery revascularization (TCAR) offering.
“We are pleased to see [Boston Scientific] continue to focus on high-growth areas,” the analysts wrote.
On Penumbra, BTIG’s Ryan Zimmerman and Iseult McMahon said Penumbra (also a “Buy” rating) allows Boston Scientific to expand into new market segments. They called the price “good” for Penumbra, recongizing the value of its “unique products, market opportunities and leading market position.”
Zimmerman and McMahon also note that Stryker’s acquisition of Inari Medical last year made Penumbra a more attractive acquisition candidate. Stryker’s buy brought the orthopedic giant into new markets that previously held the focus of other large-cap competitors. Additionally, they said Stryker’s entry into the vascular market supported Penumbra, validating its growth opportunities and market potential.
“We are not entirely surprised by the announcement,” the analysts wrote. “Since Stryker acquired Inari Medical in early 2025, the conventional thinking was that [Penumbra] would go next, but who the buyer would be was probably the key debate. At this point, we do not expect another buyer to emerge.”
