Penumbra Shares Are Rising Today — What Is The Boston Scientific Agreement?

• Penumbra shareholders have the option to either receive $374 in cash or 3.8721 shares of Boston Scientific, according to the terms of the deal.
• The $374 cash consideration per share is at a premium of over 24% compared to the closing price of Penumbra shares on Wednesday.
• Boston Scientific stated that it expects to finance the approximately $11 billion cash portion of the transaction consideration with a combination of cash on hand and new debt.

Penumbra Inc. (PEN) shares gained over 12% in Thursday’s opening trade after Boston Scientific Corp. (BSX) announced an agreement to acquire the global healthcare company.

Boston Scientific stated that it has agreed to acquire Penumbra in a cash and stock transaction that values the latter at an enterprise value of $14.5 billion.

Boston Scientific shares were down more than 5% in Thursday’s opening session. Retail sentiment on Stocktwits around Boston Scientific trended in the ‘bullish’ territory, while users felt ‘extremely bullish’ about Penumbra.

Details Of The Deal

Penumbra shareholders have the option to either receive $374 in cash or 3.8721 shares of Boston Scientific, according to the terms of the deal. The $374 cash consideration per share is at a premium of over 24% compared to the closing price of Penumbra shares on Wednesday.

“The addition of Penumbra can expand access for these novel technologies to more patients and customers around the world, further enhancing our revenue and margins over time with proven offerings that have a history of growth and innovation,” Boston Scientific CEO Mike Mahoney said.

Boston Scientific stated that it expects to finance the approximately $11 billion cash portion of the transaction consideration with a combination of cash on hand and new debt. The acquisition is expected to be $0.06 to $0.08 dilutive to adjusted earnings per share (EPS) for Boston Scientific in the first full financial year following the close of the acquisition.

What Does Penumbra Do?

Penumbra is a thrombectomy company that develops technologies for challenging medical conditions such as ischemic stroke, venous thromboembolism such as pulmonary embolism, and acute limb ischemia.

The company’s offerings, which includes computer assisted vacuum thrombectomy (CAVT), are designed to remove blood clots in patients.

PEN stock is up 13% year-to-date, while BSX stock is down 6%.

Also See: Spotify Hikes Premium Plan Price Across US, Select Markets — SPOT Stock Rises Pre-Market

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