Medical technology firm Hologic has reportedly declined a $16 billion buyout proposal from private equity groups TPG and Blackstone, according to individuals familiar with the matter.

The offer, which was nonbinding, would have valued the Marlborough, Massachusetts-based company between $16.3 billion and $16.7 billion including debt, translating to a per-share range of $70 to $72. Hologic shares closed at $54.28 the Friday before news of the offer broke. Following the report, the stock surged over 15% to $62.67.

Though Hologic rejected the initial approach, sources indicated that further discussions between the parties remain a possibility, the Financial Times reported last week.
Hologic, which focuses on diagnostics and medical devices for women’s health — including breast imaging systems — has experienced share price volatility this year, down roughly 24% before the offer was reported. Earlier this month, the company revised its profit forecast downward, citing the impact of U.S. tariffs on imports from China and Costa Rica, both key to its manufacturing operations.

While Hologic’s molecular diagnostics business, which includes testing kits for COVID-19 and sexually transmitted infections, posted growth in the second quarter, that was offset by declining revenue in the breast health division. Chief executive Steve MacMillan told investors it had “been a tumultuous few months from a macroeconomic and policy perspective,” but said the company was moving “in the right direction.”

Hologic has previously attracted takeover interest. Activist investor Carl Icahn disclosed a 12.5% stake in 2013, eventually gaining board representation and prompting the company to adopt defensive measures.

TPG and Blackstone have a history of pursuing large healthcare transactions. The two firms previously attempted a joint acquisition of eyecare company Bausch + Lomb, though that effort ultimately fell through.

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