Fairness opinionsMedical Devices and Supplies2026

Penumbra acquired by Boston Scientific: fairness opinion by Perella Weinberg Partners

Announced January 15, 2026 · One-step merger · Cash and stock · DEFM14A filed April 1, 2026
Medical Devices and Supplies Medical Devices
Enterprise value
$15B
EV / LTM EBITDA
57.7x
EBITDA $251M · 19% margin
EV / LTM revenue
10.82x
revenue $1.3B
DCF discount rate
9.0%–11.0%
Perpetuity growth

Deal terms

ConsiderationCash and stock
Price per share$374.00
Premium
Premium basis
StructureOne-step merger
Termination fee$525M (3.5% of equity)
Reverse termination fee$900M
Go-shopNone
Outside date

Election of $374.00 in cash per share or 3.8721 Boston Scientific shares per share, subject to proration such that 73.26% of shares receive cash and 26.74% receive stock. Stock consideration valued at $374.00 based on $96.59 10-day VWAP of BSX through January 13, 2026. As of March 27, 2026 the stock consideration was worth $267.83 per Penumbra share.

Implied value per share by method vs. $374.00 offer

Selected companies — EV / 2026E Revenue $211.00 – $291.00
Selected companies — EV / 2027E Revenue $193.00 – $284.00
Selected companies — EV / 2026E EBITDA $153.00 – $292.00
Precedent transactions — EV / LTM Revenue $260.00 – $366.00
Precedent transactions — EV / NTM Revenue $251.00 – $350.00
Precedent transactions — EV / NTM EBITDA $153.00 – $362.00
Discounted cash flow $255.00 – $420.00
Historical Stock Trading (52-week intraday range through January 13, 2026) $221.00 – $325.00
Equity Research Analysts' Price Targets $266.00 – $388.00

Ranges as disclosed in the banker’s summary of analyses; the red line marks the per-share consideration.

Opinion of Perella Weinberg Partners to the target board

Delivered January 14, 2026 · Fee $115M ($110M contingent on closing), $5.0M on delivery of the opinion

Discounted cash flow assumptions

Discount rate9.0%–11.0%
BasisPenumbra's weighted average cost of capital determined via capital asset pricing model, taking into account target capital structure, cost of long-term debt, forecasted tax rate and predicted Barra beta
Terminal valuePerpetuity growth
Perpetuity growth3.5%–4.5%
Exit multiple
Projection period2026E-2035E
Projections usedPenumbra Forecasts (Penumbra management)
Implied value per share$255.00–$420.00

Present value as of January 13, 2026 of standalone unlevered free cash flow for CY2026-2035 plus terminal value at end of CY2035; equity value derived by adding cash and cash equivalents and subtracting financing leases, diluted shares via treasury stock method.

Selected public companies (7)

Glaukos Corporation · Insulet Corporation · TransMedics Group, Inc. · iRhythm Technologies, Inc. · DexCom, Inc. · Inspire Medical Systems, Inc. · Masimo Corporation

MultiplePeer lowPeer medianPeer highRange appliedImplied per share
EV / 2026E Revenue 5.0x–7.0x $211.00–$291.00
EV / 2027E Revenue 4.0x–6.0x $193.00–$284.00
EV / 2026E EBITDA 20.0x–40.0x $153.00–$292.00

Selected precedent transactions (12)

DateTargetAcquirerMultiple
2025-01-06Inari Medical, Inc.Stryker Corporation
2024-04-05Shockwave Medical, Inc.Johnson & Johnson
2024-01-08Axonics, Inc.Boston Scientific
2022-11-01Abiomed, Inc.Johnson & Johnson
2022-01-06Vocera Communications, Inc.Stryker Corporation
2021-10-06Baylis Medical Company, Inc.Boston Scientific
2021-08-06Intersect ENT, Inc.Medtronic PLC
2020-12-18BioTelemetry, Inc.Philips Healthcare N.V.
2020-08-02Varian Medical Systems, Inc.Siemens Healthineers AG
2019-11-04Wright Medical Group N.V.Stryker Corporation
2018-11-20BTG plcBoston Scientific
2017-06-28The Spectranetics CorporationPhilips Healthcare N.V.
MultipleLowMedianHighRange appliedImplied per share
EV / LTM Revenue8.5x 7.0x–10.0x $260.00–$366.00
EV / NTM Revenue7.2x 6.0x–8.5x $251.00–$350.00
EV / NTM EBITDA28.7x 20.0x–50.0x $153.00–$362.00

Other analyses

AnalysisSummaryImplied per share
Historical Stock Trading (52-week intraday range through January 13, 2026)Penumbra intraday trading price over the 52 weeks ended January 13, 2026 ranged from $221 to $325 per share; reference data only, not part of the fairness analysis.$221.00–$325.00
Equity Research Analysts' Price TargetsPrice targets from 18 equity research analysts published prior to January 13, 2026 ranged from $266 to $388 per share; reference data only, not part of the fairness analysis.$266.00–$388.00

$5.0 million payable upon delivery of the opinion (or determination it could not deliver the requested opinion); additional fee contingent upon consummation of the Merger of approximately $109.6 million (after reduction by the opinion fee). PWP also entitled to a termination fee equal to a portion of any compensation Penumbra may receive from termination of the Merger Agreement.

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Management projections

Projection yearYear 1Year 2Year 3Year 4Year 5CAGR
Revenue$1.7B$2.0B$2.4B$2.7B$3.1B16.5%
Revenue growth26.2%20.7%16.4%15.2%13.9%
EBITDA$337M$518M$692M$844M$1.0B31.5%
EBITDA growth34.0%53.7%33.6%22.0%19.3%
EBITDA margin20%25%29%31%32%
Implied EV / EBITDA43.0x28.0x21.0x17.2x14.4x

Year-1 growth is against LTM at announcement ($1.3B revenue, $251M EBITDA); later years are year over year.

Penumbra management prepared the "Penumbra Forecasts" covering calendar years 2026E through 2035E, provided to the Penumbra Board and used by PWP in its analyses. Revenue grows from $1,690 million in 2026E to $5,025 million in 2035E; Adjusted EBITDA grows from $337 million to $1,794 million (Adjusted EBITDA Pre-SBC of $400 million to $1,945 million), and unlevered free cash flow from $108 million to $1,181 million. Only the forecasts through 2028 (excluding unlevered free cash flow) were shared with Boston Scientific; the 2026E figures were updated on January 8, 2026 from an earlier Medium-Term Outlook (2026E revenue $1,684 million, Adjusted EBITDA $341 million) provided December 22, 2025. PWP's selected companies/precedent analyses used Wall Street consensus estimates (2026E revenue $1,577 million, 2027E revenue $1,792 million, 2026E EBITDA $277 million, 2025 LTM revenue $1,404 million).

Process notes

Single financial advisor (Perella Weinberg Partners) to Penumbra; no opinion delivered to Boston Scientific. No market check / pre-signing outreach to other parties - the Penumbra Board concluded it was in stockholders' best interests not to solicit other offers given leak risk. Price escalated in negotiations from $365 (Dec 29, 2025) to $370 (Dec 31) to a "best and final" $374 per share (Jan 3, 2026), with the Penumbra termination fee reduced from a proposed $553 million to $525 million (~3.5% of equity value) and the reverse termination fee increased to $900 million (~6%). Boston Scientific agreed to litigate any antitrust challenge and, if necessary, divest assets generating up to $300 million of 2025 revenue. CEO Adam Elsesser indicated an intention to elect all-stock consideration. The consideration is a cash/stock election subject to 73.26%/26.74% proration; PWP expressed no opinion on the allocation or proration mechanics.

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