Boston Scientific beefs up heart device portfolio with $14.5 billion Penumbra deal

By Mariam Sunny and Mrinalika Roy

Jan 15 (Reuters) - Boston Scientific BSX.N agreed to buy medtech firm Penumbra PEN.N in a $14.5  billion deal on Thursday, its second‑largest takeover ever, as it looks to re-enter the neurovascular market and broaden its heart device portfolio.

The acquisition is the first major healthcare deal of 2026, a year analysts and industry insiders expect will bring a wave of mega-mergers as companies take advantage of a more favorable regulatory backdrop and easing interest rates to bolster their portfolios.

Boston CEO Mike Mahoney said the deal was a "home run" and "financially compelling" on a conference call with analysts.

Medtech firms have been expanding their cardiovascular franchises through internal R&D and acquisitions, as an aging population and rising prevalence of heart conditions lift demand in the segment.

U.S.-based Stryker SYK.N signed a $4.9 billion deal last year to acquire Inari Medical to build out its portfolio of devices to treat vascular diseases.

Boston, which recently raised its annual profit forecast on strong demand for its heart devices, said the inclusion of Penumbra's products will help it improve revenue and margins over time.

The deal puts Boston back into several rapidly growing markets, while also filling a gap in the company's neurovascular portfolio, Truist analyst Richard Newitter said.

Boston had divested its neurovascular business to Stryker more than a decade ago.

Mahoney said the company had long viewed neurovascular as an attractive segment but wanted to enter with a scaled commercial platform and a strong pipeline. "To enter that business, we always felt we needed a leading portfolio," he said.

Penumbra is expected to bring in about $1.4 billion in sales in 2025. Shares of the company jumped over 12% to $352.05.

The buyout makes "a good deal of sense" for Boston and could help accelerate and sustain organic revenue growth trajectory in 2027 and beyond, JP Morgan analysts said, but cautioned it may attract significant investor scrutiny.

Boston shares fell 4% to $89.99.

The deal values Penumbra at $374 per share, a premium of about 19.3% to its last close. Penumbra shareholders can elect to receive either $374 in cash or 3.8721 Boston Scientific shares, with the deal paid about 73% in cash and 27% in stock.

The transaction is expected to be completed in 2026, and Penumbra's chairman and chief executive officer, Adam Elsesser, will join Boston's board upon deal close.