Private-equity giants Blackstone and TPG are nearing an agreement to acquire Hologic, the maker of diagnostic and medical imaging equipment for women’s health, in a deal that could value the company at more than $17 billion, including debt, according to people familiar with the matter.

The firms are said to be finalizing terms that would price Hologic shares at more than $75 apiece, these people said—a premium to recent trading levels that reflects strong investor appetite for healthcare assets with recurring revenue streams. A formal announcement could come within days, though the negotiations remain fluid and could still fall apart.

If completed, the transaction would rank among the largest leveraged buyouts in the healthcare sector in recent years, underscoring private equity’s renewed confidence in the market for medical technology and diagnostics after a period of rising borrowing costs and subdued dealmaking. It would also mark a significant shift for Hologic, which has spent the past decade transforming itself from a cyclical imaging business into a diversified provider of diagnostic products and lab instruments, including widely used cancer screening tests.

Hologic, based in Marlborough, Massachusetts, has been a steady performer in the post-pandemic diagnostics market, benefiting from its reputation for high-margin products and reliable cash flow. Its shares rose roughly 2% on Friday and climbed an additional 6% in after-hours trading following Bloomberg’s report of the potential deal. The rally follows an earlier move sparked by 9fin’s report of a $9 billion financing package being assembled by Blackstone and TPG to fund the acquisition.

The buyout would extend a busy year for both firms. Blackstone has stepped up its push into healthcare platforms, while TPG has sought opportunities in diagnostics and biotech services. For both, Hologic represents an appealing mix of stable cash generation and technological innovation in women’s health, an area seen as resilient to broader economic swings.

A final agreement has not been reached, and both sides continue to discuss valuation, financing, and governance terms, the people cautioned. Still, the talks suggest that private equity’s appetite for large-scale healthcare deals is once again gathering pace.

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