Boston Scientific to Acquire Penumbra in $14.5 Billion Cash-and-Stock Deal
Boston Scientific (NYSE: BSX) announced an agreement to acquire Penumbra (NYSE: PEN) in a cash-and-stock transaction valued at approximately $14.5 billion in enterprise value. The acquisition significantly expands Boston Scientific’s cardiovascular portfolio and deepens its exposure to fast-growing vascular intervention markets.
Following the announcement, Penumbra shares surged roughly 13% in premarket trading, while Boston Scientific shares declined about 4%, reflecting near-term dilution concerns for the acquirer.
Deal Structure and Shareholder Consideration
Under the terms of the agreement, Penumbra shareholders will receive $374 per share, based on the volume-weighted average price of Boston Scientific stock over the ten trading days ending January 13. Shareholders may elect to receive either $374 in cash or 3.8721 shares of Boston Scientific stock, subject to proration.
The total consideration will be paid approximately 73% in cash and 27% in stock. Boston Scientific expects to fund the roughly $11 billion cash portion through a combination of cash on hand and new debt financing.
The transaction is expected to close in 2026, pending Penumbra shareholder approval and customary regulatory and closing conditions.
Financial Impact to Boston Scientific
Boston Scientific said the acquisition is expected to be $0.06 to $0.08 dilutive to adjusted earnings per share in the first full year following close. The deal is expected to be neutral to slightly accretive in the second year, and increasingly accretive thereafter, as synergies and revenue contributions materialize.
Management framed the transaction as a strategic investment aligned with long-term growth, despite near-term EPS dilution.
Strategic Rationale: Strengthening Cardiovascular Leadership
Penumbra is best known for its mechanical thrombectomy technologies, including the Lightning Bolt and Lightning Flash computer-assisted vacuum thrombectomy (CAVT) systems. These products are used to remove blood clots from arterial, venous, and pulmonary vessels, addressing a growing global burden of vascular disease.
The acquisition broadens Boston Scientific’s interventional portfolio and positions the company to benefit from rising demand for minimally invasive treatments targeting thrombosis and other vascular conditions.
Penumbra Growth Outlook Remains Strong
Separately, Penumbra raised expectations for near-term performance. The company now expects fourth-quarter revenue growth of approximately 21.4% to 22.0% year over year, and fiscal 2025 revenue growth of about 17.3% to 17.5%. The strong growth outlook likely reinforced investor confidence in the strategic value of the acquisition.
Investor Takeaway
For investors, the transaction represents a long-term portfolio expansion play for Boston Scientific, trading short-term dilution for exposure to a faster-growing vascular intervention franchise. Penumbra shareholders, meanwhile, are being offered a meaningful premium and flexibility between cash and equity participation.
Market focus will now shift to regulatory review, financing execution, and integration planning, as well as how quickly Boston Scientific can translate Penumbra’s growth profile into sustained earnings accretion.
