Tempus AI will acquire Personalis for $1.5 billion, offering shareholders $16.25 per share in a stock-based transaction with cash option.
Tempus AI agreed to acquire cancer-monitoring firm Personalis for $1.5 billion, paying $16.25 per share. The deal includes a 6% premium to Friday’s closing price and a 28% premium to the 30-day volume-weighted average price.
The transaction, structured as a 100% stock deal, allows Tempus to use cash for up to half the consideration. Both companies’ boards approved the deal, which is expected to close in late 2026 or early 2027 pending shareholder and regulatory approval.
Shares of both companies fell after the announcement. Personalis stock dropped 13%, while Tempus AI also declined. Analysts cited the stock-based structure as a factor in the sell-off, with Needham downgrading Personalis to Hold from Buy.