Penumbra (NYSE:PEN), a leading medical device company known for its innovative solutions in the healthcare sector, particularly in the areas of mechanical thrombectomy and embolization devices, has recently been in the news due to a significant financial development. Wells Fargo has set a price target of $374 for Penumbra, which represents a 6.47% increase from its current trading price of $351.27. However, it's noteworthy that Wells Fargo also downgraded Penumbra to Equal Weight from Overweight, as highlighted by TheFly.
In a major move within the healthcare industry, Boston Scientific Corp announced its intention to acquire Penumbra in a cash and stock transaction, valuing Penumbra at $374 per share. This acquisition places Penumbra's enterprise value at approximately $14.5 billion. Following this announcement, Penumbra's shares experienced a surge of nearly 12% to around $350, while Boston Scientific's shares saw a decline of 4.5% to approximately $90.
Under the terms of the acquisition agreement, Penumbra shareholders are given the option to receive either $374 in cash or 3.87 shares of Boston Scientific stock for each share they hold. The total consideration of the deal is expected to be about 73% cash and 27% stock. Boston Scientific plans to finance the $11 billion cash portion using cash on hand and new debt. The transaction is anticipated to close in 2026, pending Penumbra shareholder approval and customary conditions.
Penumbra's stock has witnessed a significant increase of 12.07%, translating to a rise of $37.85. Today, the stock fluctuated between a low of $345.20 and a high of $352.15, with the latter marking its highest point for the year. Over the past year, the stock's lowest price was $221.26. Penumbra has a market capitalization of approximately $13.76 billion, and today's trading volume is 6,385,647 shares.
