Hologic Stock Rises as Report Says Blackstone and TPG in Advanced Takeover Talks

Hologic stock had been under pressure this year amid decreased demand for its breast cancer screening products. (Dreamstime)

Key Points

• Hologic stock rises on a report that Blackstone and TPG are in advanced talks to acquire the company.
• The reported deal values Hologic at more than $17 billion, including debt.
• Despite dominating women’s health products, Hologic’s shares have fallen this year due to macroeconomic uncertainty and reduced demand for breast cancer screenings.

Hologic stock climbed Monday on a report that Blackstone and TPG were in advanced talks to acquire the medical device maker.

The deal values Hologic at more than $17 billion including debt, Bloomberg reported, citing people familiar with the matter.

TPG declined to comment in an email to Barron’s. Hologic and Blackstone didn’t respond to requests for comment.

Shares gained 2.7% to $71.75 on Monday. The benchmark S&P 500 index was up 1.1%.

Hologic’s enterprise value stood at $16 billion, including nearly $1 billion in debt, on Friday. It isn’t the first time rumors of a pending acquisition have caused shares to rise. The stock surged in May following a report that the medtech company had rejected a $16 billion take-private offer from Blackstone and TPG.

Hologic has cornered the market for women’s health products and related diagnostic tools. However, shares have fallen nearly 1% this year, pressured by macroeconomic uncertainty and lower demand for the company’s breast cancer screening products after the pandemic. The S&P 500, by comparison, has gained more than 14%.

The company is set to report fiscal fourth-quarter earnings on Nov. 3.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com