Personalis

Genomics · Cancer Diagnostics · AI Healthcare

Acquisition

Tempus AI to acquire cancer diagnostics firm Personalis for $1.5B

Both companies' shares fell on the news, as investors questioned an all-stock structure expanding into a $20B cancer-monitoring market.

• Tempus AI agreed to acquire Personalis for $16.25 per share, a deal valuing the company at about $1.5 billion, payable mostly in stock with an option for Tempus to pay up to half in cash.
• Personalis makes NeXT Personal, a whole-genome liquid biopsy test that tracks minimal residual disease (MRD) — tiny traces of cancer left after treatment that scans can miss.
• The offer is a 6% premium to Friday's close but a 28% premium to the unaffected 30-day average price, with a floating share exchange ratio capped at 0.3356.
• Personalis posted preliminary Q2 revenue of $22.4 million and delivered 10,384 clinical tests, a 33% jump in test volume from the prior quarter.
• The buyout builds on a partnership dating to November 2023, when Tempus first invested in Personalis and began commercializing NeXT Personal.
• Personalis shares dropped about 12% and Tempus fell nearly 9% after the announcement, with an analyst citing investor skepticism about the stock-heavy deal.
• Full ownership of NeXT Personal lets Tempus fold a proven MRD test directly into its AI-driven data platform as it races to lead a cancer-monitoring market both companies peg at $20 billion.
• The merger needs Personalis shareholder and regulatory approval and is expected to close in late 2026 or early 2027.