China Clears Major Take-Private Acquisition of U.S. Medtech Leader
China’s State Administration for Market Regulation has granted approval to the $18.3 billion acquisition of Hologic, Inc. — a leading American medical diagnostics company — by private equity firms Blackstone Inc. and TPG Capital. The regulatory clearance is a key step toward completing one of the largest healthcare buyouts in nearly two decades and highlights continued global private equity interest in the medical technology sector.
- Deal value: $18.3 billion, including debt, making it the biggest medtech acquisition in nearly 20 years.
- Target: Hologic, a U.S. medical technology company focused on women’s health diagnostic and imaging products.
- Buyout firms: Blackstone and TPG, with financing commitments from major global banks.
- Regulatory approval: Granted by China’s market regulator, enabling the transaction to proceed amid global scrutiny of large cross-border deals.
Context and Strategic Rationale
The approval from China’s State Administration for Market Regulation comes after Blackstone and TPG initially announced the transaction in October 2025. Under the terms agreed, Hologic shareholders are to receive $76 per share in cash, with an additional contingent value right (CVR) of up to $3 per share tied to future performance milestones, which could bring total consideration to $79 per share.
Hologic operates globally in diagnostic products and medical imaging, with a material footprint in women’s health — including technologies used for breast and cervical cancer screening. The company maintains manufacturing operations and partnerships in China, which placed the deal under the scrutiny of Chinese regulators before receiving approval.
Private Equity Confidence in Healthcare Assets
The transaction underscores a broader trend in private equity where firms are deploying significant capital into stable, cash-generating sectors such as healthcare and medical technology. By taking Hologic private, Blackstone and TPG aim to streamline operations away from short-term quarterly reporting pressures and focus on long-term growth, research and development initiatives, and strategic portfolio expansion.
Major financial institutions, including Citi, Bank of America, Barclays, Royal Bank of Canada and SMBC, have committed to debt financing to support the acquisition, reflecting confidence from global lenders in the strategic value of the target and its future prospects.
Market and Investor Implications
For investors, this acquisition carries multiple implications. Public shareholders of Hologic will receive a significant premium for their shares and immediate liquidity as the company transitions to private ownership. The transaction also illustrates how private equity players continue to seek value in sectors where growth is predictable and demand is resilient, such as women’s health diagnostics.
Industry analysts have pointed to the strategic importance of companies with stable revenue streams and market-leading products in healthcare, especially in areas tied to demographic and preventive care trends. This deal is likely to serve as a benchmark for future private equity activity in medical technology and related sectors.
Next Steps and Outlook
With China’s regulatory hurdle cleared, the acquisition still requires shareholder approval and fulfillment of customary closing conditions in the U.S. and other jurisdictions. If all conditions are met, the transaction is expected to close in the first half of 2026. Upon completion, Hologic will be delisted from the Nasdaq stock exchange and operate as a private company under the ownership of Blackstone, TPG and relevant investor partners.
