Tempus AI, Inc., a leader in precision medicine, has signed a definitive deal for the acquisition of Personalis, Inc. The deal, worth an enterprise value of approximately $1.5 billion on a net basis after Tempus’ current equity holdings, is expected to leverage Personalis’ advanced MRD testing capabilities in combination with Tempus’ comprehensive multi-modal data platform and commercial presence.
According to the deal terms, each share of Personalis’ common stock will be worth $16.25 per share. The deal will bolster Tempus’ leadership throughout the entire continuum of care for oncology, including early diagnosis and treatment selection through post-treatment surveillance and recurrence detection.
Expanding Reach in a $20 Billion Precision Oncology Market
The agreement comes on the heels of the already existing strategic partnership entered into by the two firms back in November 2023 where Tempus had initially invested in Personalis and gained commercial rights to its leading NeXT Personal® MRD test.
Cancer diagnosis is projected at 2.1 million people in just the US alone this year. Long-term monitoring of patients has now taken center stage in oncological care due to its importance. The NeXT Personal® technology from Personalis provides an unparalleled sensitivity when it comes to detecting tiny amounts of circulating tumor DNA (ctDNA) in a patient’s blood sample.
Currently supported by Medicare coverage across three clinical indications, Personalis continues to expand its reimbursement footprint, creating a strong foundation for broader clinical adoption.
Commenting on the strategic vision behind the acquisition, Eric Lefkofsky, CEO of Tempus, noted: “MRD is a large and rapidly growing market with the potential to truly transform how cancer patients are monitored, helping clinicians make faster and more informed decisions when cancer recurs,” said Eric Lefkofsky, CEO of Tempus. “Through our existing collaboration with Personalis, we have already demonstrated the strength of combining highly sensitive MRD technology with our commercial infrastructure. With clinical adoption and reimbursement momentum building, we are collectively well positioned to capture this opportunity, which makes this acquisition particularly exciting.”
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Strategic Value for Shareholders and Biopharma Partners
The acquisition provides Personalis with access to Tempus’ commercial infrastructure, machine learning capabilities, and extensive clinical database. By pairing longitudinal MRD tracking with Tempus’ data-driven insight generation, the combined entity aims to accelerate biomarker discovery and streamline clinical trial design for biopharmaceutical partners.
Reflecting on the milestone agreement, Chris Hall, CEO of Personalis, stated:
“We believe this transaction represents an exciting next chapter for Personalis,” said Chris Hall, CEO of Personalis. “Combining with Tempus gives us the scale, complementary capabilities and resources to accelerate innovation and deliver even greater value to patients, clinicians and biopharma partners. After conducting an exhaustive process, we are confident Tempus’ offer provides the most value to our shareholders and the fastest path to bringing Personalis’ industry-leading tests to patients suffering from cancer.”
Terms of the Transaction and Financial Highlights
• Bid Price: $16.25 per share of Personalis Common Stock, which is a 6% premium to the prior day’s closing price and 28% premium to the unaffected 30-day VWAP.
• Sales Process: Structured as mostly as a 100% stock deal with a floatting exchange ratio (with a cap on the exchange ratio of 0.3356 shares of Tempus stock for each share of Personalis). In addition, Tempus has full discretion to provide cash consideration up to 50% of the total consideration from its available cash balance and credit lines.
• Timing of Completion: Expected to complete the deal in late 2026 or early 2027 contingent upon completion of customary conditions, approvals and regulatory requirements. The transaction unanimously approved by the Board of Directors of both entities.
• Financial Performance: Personalis reported preliminary revenue of $22.4 million in the second quarter due to delivering 10,384 clinical tests (up 33% from the previous quarter).
