Boston Scientific to Acquire Penumbra for $14.5 Billion

Boston Scientific Corporation has announced its agreement to acquire Penumbra, Inc. The deal values Penumbra at $14.5 billion, allowing Penumbra's shareholders to opt for cash or stock. Boston Scientific anticipates financing the cash portion with existing funds and new debt, expecting changes in earnings per share.

Boston Scientific Corporation has made a significant move by announcing its agreement to acquire Penumbra, Inc. The acquisition values Penumbra at a substantial $14.5 billion, providing shareholders with options for cash or stock.

In order to finance the $11 billion cash portion of the transaction, Boston Scientific plans to use a combination of cash on hand and new debt. The company foresees the deal to be slightly dilutive to adjusted earnings per share (EPS) in the first year.

Looking forward, Boston Scientific expects that the acquisition will be neutral to slightly accretive to adjusted EPS in the second year and more accretive thereafter, with projections of their fiscal year 2025 revenue reaching around $1.4 billion.