Blackstone and TPG Acquire Hologic

Private equity activity remained strong this week as Blackstone and TPG announced a joint agreement to acquire leading medical device and diagnostics company specializing in women’s health, Hologic. The deal is for $18.3 billion, including debt. The transaction marks the largest medical device buyout since 2006, showing that buyouts are picking up again now that it’s easier and cheaper for firms to borrow.

Under the deal terms, Blackstone and TPG will purchase all outstanding Hologic shares for $76  per share in cash, with an additional contingent value right (CVR) worth up to $3 per share, depending on the company reaching future revenue goals for the 2026-2027 calendar year in its breast-health division.  The total potential compensation of $79 per share constitutes a 46% premium to Hologic’s stock before reports of the buyout.  

This deal shows how steady interest rates and stronger lending conditions are allowing private equity firms to make bigger acquisitions. After the Federal Reserve’s September rate cut, banks have become more open to financing large transactions. For this deal, Citigroup, Bank of America, Barclays,  Royal Bank of Canada, and Sumitomo Mitsui Banking Corp are all providing the funding. 

The Hologic buyout is part of a surge in major deals. In the last month, Electronic Arts agreed to a $55 billion buyout, and BlackRock’s Global Infrastructure Partners announced a $40 billion purchase of  Aligned Data Centers. Together, these examples show how easier borrowing has renewed investor interest in large, debt-backed deals. 

For Blackstone and TPG, buying Hologic is a chance to invest in a profitable healthcare company with steady cash flow and room to grow. Hologic’s products, especially those for breast and cervical cancer screening, are seen as innovative and hard to copy, giving the company a strong position in the market. By taking Hologic private, the firms hope to boost research and product development without the pressure of reporting quarterly results. 

Hologic’s CEO, Stephen MacMillan, said the deal will help the company expand internationally and continue to innovate in women’s health. 

This deal also fits into a larger trend in the market. While tech and AI companies still attract the highest valuations, sectors like healthcare, industrials, and consumer products remain undervalued, giving private equity firms more opportunities to find good deals. 

If interest rates stay around 4–4.25% and banks keep lending easily, you can expect strong deal activity to continue into 2026. Still, global tensions and possible new tariffs could affect how long firms hold onto investments and when they decide to sell.