Tempus AI to Buy Personalis in $1.5 Billion Mixed Deal
The acquisition would fold Personalis’ residual-disease tests into Tempus’ AI-enabled precision-oncology platform.
Tempus AI, Inc. (TEM) agreed to acquire Personalis, Inc. (PSNL) in a transaction valued at $1.5 billion, deepening its push into molecular residual disease testing and cancer monitoring. The mixed-consideration deal would combine Tempus’ multimodal data and artificial-intelligence capabilities with Personalis’ tumor-informed testing technology.
Personalis shareholders would receive $16.25 for each common share, representing a 6% premium to Friday’s closing price and a 28% premium to the unaffected 30-day volume-weighted average price. The consideration was structured as a stock transaction, with Tempus retaining the option to pay cash for as much as 50% of the total. Shareholders receiving stock would get a floating exchange ratio finalized near closing and capped at 0.3356 Tempus share for each Personalis share. Any cash portion would be funded with cash on hand and borrowings under Tempus’ existing credit facilities.
The acquisition built on a commercial partnership established in November 2023. Tempus already marketed Personalis’ NeXT Personal test and had expanded that relationship in 2024 with a roughly $36 million investment, giving it an ownership position in the company. Bringing the businesses together would give Tempus tighter control over a technology it was already distributing while extending its precision-oncology platform from diagnosis and treatment selection into recurrence detection and longer-term monitoring.
“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,” Tempus Chief Executive Eric Lefkofsky said. The combination would broaden access to longitudinal monitoring, create opportunities for biomarker discovery and support more personalized cancer care.
Personalis developed tests designed to detect small traces of circulating tumor DNA, allowing clinicians to track treatment response, residual cancer and potential recurrence. Its NeXT Personal platform had secured Medicare coverage in three indications, with the company anticipating additional coverage. Personalis reported preliminary second-quarter revenue of $22.4 million and delivered 10,384 clinical tests, a 33% sequential increase in volume.
The transaction followed Tempus’ agreement to acquire Ambry Genetics for $600 million in cash and stock, a deal intended to add hereditary-cancer screening and broaden Tempus’ testing capabilities. Together, the Ambry and Personalis transactions extended Tempus’ diagnostics reach across inherited risk, active treatment and post-treatment monitoring, linking a wider range of clinical tests to its data platform.
The companies’ boards approved the Personalis transaction, which was expected to close in late 2026 or early 2027. Completion remains subject to approval by Personalis shareholders, applicable regulatory clearances and other customary conditions. Those approvals stand between Tempus and full ownership of a cancer-monitoring technology that had already become part of its commercial infrastructure.