Boston Scientific to Acquire Penumbra in $14.5 Billion Deal Targeting Thrombectomy Market Leadership

Boston Scientific Corporation (NYSE: BSX) experienced a decline in its stock price on Thursday, in contrast to Penumbra, Inc. (NYSE: PEN), which saw its shares rise after news broke that Boston Scientific agreed to acquire Penumbra in a cash-and-stock transaction. This divergence in market response reflects differing investor perspectives: optimism about Penumbra’s expanding growth profile and cautiousness over Boston Scientific’s expected short-term integration costs and earnings dilution following the deal. The acquisition values Penumbra at $374 per share, resulting in an enterprise value near $14.5 billion. Under the terms of the agreement, Penumbra’s shareholders can choose to receive their compensation in cash or Boston Scientific stock. The overall transaction is expected to comprise roughly 73% cash and 27% equity on a prorated basis. Boston Scientific’s CEO, Mike Mahoney, emphasized the strategic significance of the deal by stating that Penumbra is a well-established entity supported by a capable and experienced management team. Mahoney highlighted that this acquisition offers Boston Scientific a pathway into rapidly growing segments within the vascular medical devices sector. For his part, Penumbra’s CEO Adam Elsesser noted the alignment between his company’s dedication to innovation in treating complex medical conditions and Boston Scientific’s broader strategic initiatives. Elsesser confirmed his intention to receive Boston Scientific shares as part of the transaction and to assume a position on Boston Scientific’s board of directors following the acquisition’s completion. In conjunction with the announcement, Penumbra revealed preliminary fourth-quarter 2025 financial results that contributed to its stock price surge during premarket trading. The company reported revenue in a range between $383.0 million and $384.8 million for the quarter, representing an estimated year-over-year increase of approximately 21% to 22%. When excluding the Chinese market, revenue growth approaches 23% to 24%. For the entire 2025 fiscal year, Penumbra generated revenue close to $1.40 billion, marking a roughly 17% increase over the prior year. On an ex-China basis, annual growth neared 25%. Gross margins remained robust, with quarterly margins near 68% and annual margins slightly above 67%. Operating income for the fourth quarter was approximately $57 million to $60 million, translating into operating margins in the mid-teens, with full-year operating income estimated between $187 million and $190 million. Regarding financing, Boston Scientific plans to cover the approximately $11 billion cash component of the deal using a combination of existing cash reserves and new debt issuance. Management projects an adjusted earnings per share dilution of 6 to 8 cents in the first full year after closing the transaction. However, they anticipate results turning neutral to accretive in the second year, with further accretion in subsequent years. As of September 30, 2025, Boston Scientific held $1.275 billion in cash and cash equivalents. The companies expect the transaction to finalize in 2026, contingent upon the approval of Penumbra’s shareholders and the completion of standard regulatory requirements. This deal exemplifies ongoing consolidation trends within the medical devices industry, underscoring larger players’ efforts to bolster their positions through targeted acquisitions in specialized treatment areas. Market response mirrored the financial disclosures and deal announcement, with Penumbra shares rising by 17.29% to $353.00 during premarket trading on Thursday, hitting a new 52-week high. Conversely, Boston Scientific shares declined 6.52% amid investor caution over immediate deal costs and dilution.