What Happened?
Shares of medical technology company Hologic (NASDAQ: HOLX) jumped 3.1% in the afternoon session after the company announced it agreed to be acquired by private equity firms Blackstone and TPG in a deal that takes the company private.
The transaction valued Hologic at up to $18.3 billion. Under the terms of the agreement, shareholders would receive $76 in cash for each share held. In addition, they would get a non-tradable contingent value right (CVR) that could provide up to an additional $3 per share in two payments. The total potential consideration of up to $79 per share represented a premium of approximately 46% over Hologic's closing price on May 23, 2025, the last trading day before media reports about a possible transaction surfaced. The deal also included minority investments from ADIA and an affiliate of GIC.
After the initial pop the shares cooled down to $74.09, up 3.1% from previous close.
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What Is The Market Telling Us
Hologic’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 18.6% on the news that the Financial Times reported that private equity firms TPG and Blackstone made an offer to buy the company (HOLX). Follow-up reports indicated that Hologic declined the offers, which valued the company at over $16 billion ($70–$72 per share), about a 30 percent premium to the prior day's close. Still, the reports revealed that the deal could be revived, leaving open the prospect of a substantially higher exit price for current shareholders.
Hologic is up 3.3% since the beginning of the year, but at $74.09 per share, it is still trading 11.5% below its 52-week high of $83.72 from November 2024. Investors who bought $1,000 worth of Hologic’s shares 5 years ago would now be looking at an investment worth $1,125.
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