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Hologic Stock (HOLX) Climbs as Blackstone and TPG Renew Take-Private Bid

September 18, 2025

Medical device maker Hologic’s (HOLX) shares received a lift on Wednesday as takeover talks returned to the spotlight. Media reports emerged that alternative asset giant Blackstone (BX) and private equity firm TPG (TPG) have rekindled their interest in acquiring the public company, which is primarily focused on women’s health.

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According to Reuters, investors in the company consider the recent fall in the company’s share price and the compensation plan for CEO Steve MacMillan as a reason to go ahead with the acquisition. MacMillan is expected to rake in over $40 million in stock and cash should the deal push through.

The revived buyout interest comes about five months after the private equity firms proposed a $16 billion non-binding offer to take Hologic private. This offer includes assuming the medical tech company’s debt, which its most recent regulatory filing shows to be about $2.5 billion.

However, Hologic reportedly rejected the deal. This is even as negotiations on the terms of the acquisition have been on-and-off over the past year.

Hologic Looks to Grow Revenue

Meanwhile, the renewed acquisition interest comes as Hologic looks to expand its revenue. In its third-quarter results for Fiscal year 2025, the Massachusetts-based company hit a revenue of over $1 billion, surpassing the high end of its guidance by $14 million. The revenue came in at 0.4% higher, year-over-year.

However, Needham analyst Michael Matson has raised concerns about Hologic’s gross organic sales growth—sales not influenced by outside factors such as acquisitions and currency changes. He recently noted that this growth has slowed down when compared to the company’s previous quarters.

This is even as Hologic’s gross margin fell by 80 basis points year-over-year during the recent quarter. This means that the company earned slightly less profit from each dollar of sales after accounting for production costs. Also, the firm’s operating margin—which factors in all operating expenses before payment of interest and taxes—dropped by 100 basis points compared to the same period last year.

In terms of earnings, revenue from Hologic’s Breast Health also fell 5.8% quarter-over-quarter, although it improved year-over-year. William Blair analyst Andrew Brackman has argued that this segment is crucial for the company’s growth, with the latest trend indicating that Hologoc might hit its goal in this regard.

Holgoics said it expects to achieve mid-single-digit revenue growth in fiscal year 2026. The company is banking on improvement in the breast health sector and the Genius AI Detection PRO, its advanced AI-powered tool for breast cancer detection.

Is HOLX a Good Buy?

Across Wall Street, Hologic’s shares have a Moderate Buy consensus recommendation based on six Buys and seven Holds assigned by 13 Wall Street analysts over the last three months. The average HOLX price target of $75.22 also indicates a 10.29% upside potential from the current level.