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Boston Scientific has announced it will acquire medical technology company Penumbra in a transaction valued at $14.5 billion, marking the company’s second-largest acquisition to date. The deal supports Boston’s plans to return to the neurovascular space while further expanding its cardiovascular device offerings.

The transaction represents the first significant healthcare merger of 2026, a year that analysts and industry sources believe could see a surge in large-scale deals as companies capitalize on a more accommodating regulatory environment and lower interest rates to strengthen their product portfolios.

Speaking on a call with analysts, Boston Scientific Chief Executive Mike Mahoney described the acquisition as a “home run” and said it was “financially compelling.”

Medical device companies have increasingly been growing their cardiovascular businesses through both in-house research and acquisitions, driven by an aging global population and a rising incidence of heart-related conditions that are boosting demand in the sector.

Last year, U.S.-based Stryker (SYK.N) agreed to acquire Inari Medical in a $4.9 billion deal to expand its range of devices used to treat vascular diseases.

Boston Scientific, which recently increased its annual profit outlook on the back of strong demand for its cardiac devices, said adding Penumbra’s products is expected to support revenue growth and margin expansion over time.

The acquisition returns Boston to several fast-growing segments and addresses a gap in its neurovascular portfolio, according to Truist analyst Richard Newitter.

More than ten years ago, Boston exited the neurovascular market when it sold that business to Stryker.

Mahoney said Boston has long considered neurovascular an appealing area but wanted to re-enter with a well-established commercial infrastructure and a robust pipeline of products. “To enter that business, we always felt we needed a leading portfolio,” he said.

Penumbra is projected to generate approximately $1.4 billion in revenue in 2025. Following the announcement, its shares surged more than 12% to $352.05.

The acquisition makes “a good deal of sense” for Boston and could help speed up and sustain organic revenue growth from 2027 onward, according to analysts at JP Morgan, who also warned the deal may face close scrutiny from investors.

Under the terms of the agreement, Penumbra is valued at $374 per share, representing a premium of about 19.3% over its previous closing price. Shareholders may choose to receive either $374 in cash or 3.8721 Boston Scientific shares, with the overall consideration structured as roughly 73% cash and 27% stock.

The deal is expected to close in 2026, after which Penumbra’s chairman and chief executive officer, Adam Elsesser, will join Boston Scientific’s board.

© Boston Scientific