The all-stock deal values Personalis at $16.25 per share, a 6% premium, as Tempus expands its cancer-testing portfolio.
Tempus AI will acquire Personalis in a $1.5bn stock deal aimed at bolstering its precision oncology offerings, including minimal residual disease testing. The transaction, set to close by early 2027, values Personalis at $16.25 per share, a 6% premium over its $15.39 close on 17 July. Tempus may opt to pay up to half the deal in cash.
Personalis, which has collaborated with Tempus since November 2023 on MRD testing, reported a market cap of $1.4bn prior to the announcement. Tempus, with an $8.69bn market cap, saw its shares drop 7.74% to $48.41 following the news, while Personalis fell 13.2% to $13.34.
Analysts cited profitability concerns as a potential investor hurdle, given Personalis’ loss-making position. The deal underscores growing interest in MRD testing, which detects residual cancer cells post-treatment.