Boston Scientific Penumbra Acquisition Worth $14.5B

Boston Scientific Corporation (NYSE: BSX) and Penumbra, Inc. (NYSE: PEN) announced on Jan. 14, 2026, a cash-and-stock deal valued at $14.5 billion that will expand Boston Scientific’s cardiovascular portfolio into mechanical thrombectomy and neurovascular care. The acquisition is expected to be modestly dilutive to Boston Scientific’s adjusted earnings per share (EPS) in the first full year after closing.

Deal Terms and Financing

The companies executed a definitive Agreement and Plan of Merger, approved by both boards, under which Pinehurst Merger Sub, Inc., a Boston Scientific wholly owned subsidiary, will merge with Penumbra. The transaction values each Penumbra share at $374, with stockholders able to elect either $374 in cash or 3.8721 Boston Scientific shares. Elections will be subject to proration to achieve a roughly 73% cash and 27% stock mix, based on the volume-weighted average price as of Jan. 13, 2026.

Boston Scientific will fund the approximately $11 billion cash portion using cash on hand and new debt, consistent with its near-term capital plan. Penumbra filed a Form 8-K disclosing the merger agreement on Jan. 15, 2026. The companies issued a joint press release the same day, accompanied by an investor presentation and a conference call scheduled for 8:00 a.m. ET.

The deal’s valuation reflects about 39.2 million Penumbra common shares outstanding and roughly 40.0 million fully diluted shares, including vesting equity incentives. This corresponds to an equity value near $15.0 billion before subtracting approximately $470 million in net cash and short-term investments as of Sept. 30, 2025.

Boston Scientific named Allen Overy Shearman & Sterling LLP and Arnold & Porter Kaye Scholer LLP as legal advisers for the transaction.

Strategic Impact and Outlook

Boston Scientific described the acquisition as a way to enter fast-growing segments within the vascular space, broadening its product exposure into mechanical thrombectomy and neurovascular markets. Mike Mahoney, Boston Scientific’s chairman and chief executive, said, "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."

Adam Elsesser, Penumbra’s chairman and chief executive, will join Boston Scientific’s board upon closing and plans to elect Boston Scientific shares for all his Penumbra holdings.

Boston Scientific projects the transaction will reduce adjusted EPS by $0.06 to $0.08 in the first full year after closing, be neutral to slightly accretive in year two, and increasingly accretive thereafter. On a GAAP basis, EPS will be dilutive in the first full year due to amortization and acquisition charges. The deal is expected to close in 2026, subject to Penumbra stockholder approval, regulatory clearances, and customary closing conditions.

Penumbra reported full-year 2025 revenue of about $1.4 billion, reflecting 17.3% to 17.5% growth over the prior year. Fourth-quarter revenue grew approximately 21.4% to 22.0%, underscoring the company’s recent top-line momentum.