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Tempus AI plans to acquire Personalis to bolster its minimal residual disease, or MRD, testing business and expand its biopharma data and profiling capabilities. The deal is set at $16.25 per Personalis share and is expected to close in late 2026 or early 2027.
Tempus said Personalis' NeXT Personal assay is gaining traction, with quarter-over-quarter growth of 38%, and expects adoption to improve further as more sales reps are trained and additional indications win reimbursement.
The company believes the acquisition will strengthen its broader precision medicine strategy, including AI-enabled tools, hospital connectivity, and biopharma opportunities, while still keeping its goal of being adjusted EBITDA and free cash flow positive in 2027.
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Tempus AI (NASDAQ:TEM) executives said the company's planned acquisition of Personalis is intended to strengthen its position in minimal residual disease, or MRD, testing, while expanding its biopharma data and profiling capabilities.
On a call with analysts, Tempus said it agreed to acquire all outstanding shares of Personalis not already owned by Tempus at $16.25 per share. The company said the price represents a 6% premium to Personalis' Friday closing price and a 28% premium to its unaffected 30-day volume-weighted average price.
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The consideration is structured as 100% stock, though Tempus has the option to pay up to 50% in cash. Personalis shareholders would receive a floating exchange ratio of Tempus common stock for each Personalis share held at closing, subject to a maximum exchange ratio of 0.3356. Tempus said any cash portion could be financed with cash on hand and additional borrowing procured between signing and closing. The companies expect the transaction to close in late 2026 or early 2027.
Tempus said Personalis' NeXT Personal offering has seen strong adoption, with quarter-over-quarter growth of 38%. The company said volumes could become "even more material and higher" as additional sales representatives are equipped to sell the offering and as more indications secure reimbursement.
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In response to a question from Kallum Titchmarsh of Morgan Stanley, an executive identified as Eric said Tempus is "quickly gaining market adoption," citing both overall growth in the MRD market and the performance of Personalis' assay. He said Tempus expects to embed more of its technology into the MRD offering over time, including hospital connectivity, AI-enabled ordering tools and AI-derived insights.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
