Boston Scientific’s $14.5bn Acquisition of Penumbra
- 7 hours ago
- 5 min read
By Julianna Zelnhefer, Alex Svanidze, Ryan Leo, and Ava Singer (Boston University); Haci Eren Sidar, Mustafa Arda Sis, Muthu Ramanathan, Josh Lai (University of Nottingham)
Photo: Piron Gillaume (Unsplash)
Overview of the deal
Acquirer: Boston Scientific
Target: Penumbra
Implied Equity Value: $13.4 billion
Total Transaction Size: $14.5 billion
Closing Date: N/A
Target Advisor: Perella Weinberg Partners (financial), Wardwell LL (legal)
Acquirer Advisor: N/A (financial), Allen Overy Shearman & Sterling LLP and Arnold & Porter Kaye Scholer LLP (legal)
This deal is a 14.5 billion take-private where Boston Scientific acquired Penumbra in a 73% cash and 27% stock transaction. Perella Weinberg served as an exclusive financial advisor to Penumbra. The acquisition offers Boston Scientific an opportunity to further expand into the vascular space, and Penumbra’s CEO, Adam Elsesser, will join the Boston Scientific board. The transaction is expected to be $0.06-0.08 dilutive to EPS for Boston Scientific in the first full year following the close of the acquisition, and will grow to be more accretive in future years.
"Penumbra is a well-established company with an experienced, high-performing team and this acquisition offers Boston Scientific an opportunity to enter new, fast-growing segments within the vascular space,"- Mike Mahoney, Chairman and Chief Executive Officer, Boston Scientific.
Company Details (Acquirer - Boston Scientific)
Boston Scientific is a prominent, global, publicly traded medical device company headquartered in Massachusetts. The company operates in approximately 125 countries, developing, manufacturing, and marketing a wide range of innovative medical devices for minimally invasive procedures. Their products range across a plethora of medical fields, while focusing on cardiology, endoscopy, neuromodulation, urology, and peripheral interventions.
Founded: 1979
Headquartered: Marlborough, USA
CEO: Michael Mahoney
Number of employees: 53,000
Market Cap*: $113.11 billion USD
EV*: $123.88 billion USD
LTM Revenue*: $20.07 billion USD
LTM EBITDA*: $5.6 billion USD
LTM EV/Revenue: 6.17X
LTM EV/EBITDA: 22.12X
*As of 09/02/2026
Company Details (Target - Penumbra)
Penumbra is a US-based medical device company specialising in innovative therapies for conditions such as stroke, vascular disease and pulmonary embolism. What distinguishes the firm from others is its focus on minimally invasive technologies designed to improve clinical outcomes. The company is best known for its thrombectomy systems, which are used to remove blood clots and restore blood flow in patients experiencing life-threatening conditions. Through ongoing investment in research and development, Penumbra seeks to scale its operations and introduce new medical technologies to healthcare providers worldwide.
Founded: 2004
Headquartered: Alameda, California, USA
CEO: Adam Elsesser
Number of employees: 4500+
Market Cap*: $13.38 billion USD
EV*: $13.12 billion USD
LTM Revenue*: $1.33 billion USD
LTM EBITDA: $88.65 million USD
LTM EV/Revenue: 9.85X
LTM EV/EBITDA: 69.44X
*As of 06/02/2026
Projections and Assumptions
Short-Term Consequences
In the short term, this deal is expected to have a positive effect on Penumbra's share price. It currently trades in the $340 range and this deal values it at $374 per share. According to Penumbra, in the first year following the close, expected in 2026, the transaction will be $0.06-0.08 dilutive to adjusted eps for Boston Scientific. The board will also have a change with Adam Elesser, Penumbra CEO and Chairman, joining as a member. Boston Scientific Chairman and CEO Mike Mahoney also seemed excited at the prospect of entering the vascular space through the acquisition of Penumbra. In the short term, key products in Boston Scientific's development in this field will be the Lightning Bolt® and Lightning Flash® computer assisted vacuum thrombectomy (CAVT™) systems.
Long-Term Upsides
In the long term, Boston Scientific’s $14.5 billion acquisition of Penumbra is expected to strengthen earnings and strategic positioning, despite near-term integration costs. While the deal is likely to be slightly dilutive to earnings in the first year following completion, management expects earnings to become neutral in the medium term and increasingly accretive thereafter as synergies and revenue growth are realised. This reflects the typical earnings profile of large-scale medical technology acquisitions.
From an industry perspective, Penumbra operates within high-growth segments of the medical devices market, particularly neurovascular and cardiovascular interventions. These areas benefit from favourable demographic trends such as ageing populations and rising incidences of stroke and cardiovascular disease, supporting long-term demand. The acquisition therefore increases Boston Scientific’s exposure to faster-growing therapeutic areas, enhancing its long-term revenue growth prospects.
The likelihood of realising cost and revenue synergies is relatively strong. Boston Scientific’s extensive global distribution network creates opportunities to accelerate the international adoption of Penumbra’s products, while operational efficiencies and integration of administrative functions are expected to generate cost savings over time. Analysts estimate that meaningful operating income contributions from synergies could emerge within three years of completion.
From an ESG perspective, the acquisition has positive social implications, as Penumbra’s devices address critical and life-threatening conditions, improving patient outcomes and healthcare access. Combined with Boston Scientific’s scale and governance framework, the deal supports innovation, responsible growth and long-term value creation for both patients and shareholders.
Risks and Uncertainties
Although a very clear strategy lies within Boston Scientific’s acquisition of Penumbra, the transaction still contains meaningful risk. A key concern lies within execution, particularly around integration. Penumbra operates in specialised neurovascular and peripheral thrombectomy segments that rely heavily on clinical know-how, rapid innovation cycles, and strong relationships with physicians. Transitioning these capabilities into a much larger organisation without slowing product development or diluting operating culture may prove difficult in practice.
Another key element to weigh up is the valuation of the deal. The price of Penumbra is on the premium side relative to the rest of the MedTech sector, meaning investors can react more sharply to any underperformance versus growth or margin expectations. If revenue synergies or commercial scale benefits fail to reflect what is anticipated, investor confidence can be heavily impacted given the high expectations during the announcement of the deal.
An uncertainty in regulatory compliance and clinical outcomes is another layer of risk to consider as Penumbra’s future revenues rely heavily on minimal-control events like clinical trial outcomes, regulatory approvals, and reimbursement decisions spanning several markets. Simultaneously, competition in the neurovascular and thrombectomy is intensifying, where established players are applying pressure on pricing and market share.
From a financial standpoint, the transaction may compound downside risk and constrain long-term strategic choices. If procedural volumes weaken, integration costs rise, or broader macroeconomic conditions become unfavourable in the near-term, Boston Scientific’s strong cash flows would struggle to combat these issues given the acquisition’s limiting nature on short-term capital allocation.
“Our decades-long development of therapies for challenging medical conditions has focused on deep innovation for complex diseases so that we can offer physicians novel solutions to transform patient care. I am grateful for the amazing people who have contributed to this work and look forward to uniting our efforts and shared values as we come together with Boston Scientific." - Adam Elsesser, Chairman and Chief Executive Officer of Penumbra.