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Investing.com - JPMorgan has downgraded Hologic (NASDAQ:HOLX) from Overweight to Neutral while reducing its price target to $78.00 from $80.00 following news of the company’s acquisition agreement. The medical technology company, currently trading at $73.98 with a market capitalization of $16.45 billion, has maintained strong financial health with an InvestingPro Overall Score of "GREAT" and notably low price volatility (Beta: 0.63).
Hologic has entered into a definitive agreement to be acquired by funds managed by Blackstone and TPG in a transaction valued at up to $79 per share, representing an enterprise value of up to $18.3 billion. The company, which generated $4.04 billion in revenue over the last twelve months and maintains a healthy current ratio of 3.55, has demonstrated strong operational efficiency.
The deal structure includes $76 per share in cash plus a non-tradable contingent value right (CVR) worth up to $3 per share, payable in two installments of up to $1.50 each upon achieving specific revenue milestones.
The first CVR payment would range between $0.50-1.50 if Hologic’s Breast Health business achieves fiscal year 2026 revenue between approximately $1.557 billion and $1.572 billion, with the full $1.50 realized if revenue reaches or exceeds approximately $1.572 billion.
The second CVR payment would be based on the achievement of specific revenue targets for Hologic’s Breast Health business in fiscal year 2027.
In other recent news, Hologic Inc . is reportedly in advanced discussions with private equity firms Blackstone Inc. and TPG Inc. regarding a potential acquisition. According to sources, the negotiations involve a price exceeding $75 per share, valuing Hologic at over $17 billion, including debt. While the deal could be announced soon, it remains uncertain as no final agreement has been reached. Additionally, Evercore ISI has upgraded Hologic’s stock rating to Outperform, citing anticipated growth despite challenges in fiscal year 2025, such as a tough Chinese macroeconomic environment and U.S. AID funding cuts. Meanwhile, Needham has reiterated a Hold rating on Hologic stock, with attention on the upcoming launch of the company’s Envision mammography system planned for fiscal year 2026. In related developments, Minicarm.com has secured an allocation of Hologic’s Fluoroscan Insight FD Mini C-Arm systems for resale, as Hologic winds down commercial activities for this product line. This provides continued access to the imaging system for orthopedic and extremity procedures in the U.S.
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