Tempus AI to Buy Personalis in $1.5 Billion Mixed Deal
The acquisition would bring Personalis’ residual-disease testing into Tempus’ AI-enabled precision-oncology platform.
Tempus AI, Inc. (TEM) agreed to acquire Personalis, Inc. (PSNL) in a transaction carrying a total enterprise value of $1.5 billion, net of Tempus’ existing ownership interest. The deal would deepen Tempus’ position in molecular residual disease, or MRD, by combining Personalis’ tumor-informed testing technology with the acquirer’s clinical-data network, artificial-intelligence capabilities and precision-oncology portfolio.
Personalis shareholders would receive $16.25 for each common share. The consideration was structured primarily as Tempus stock, though Tempus retained the option to pay cash for as much as 50% of the total consideration. The stock component would use a floating exchange ratio finalized closer to closing and capped at 0.3356 Tempus share for each Personalis share. The offer represented a 6% premium to Friday’s closing price and a 28% premium to Personalis’ unaffected 30-day volume-weighted average price.
The companies had already worked together since November 2023, when Tempus invested in Personalis and became the commercial partner for its NeXT Personal MRD test. Their expanded relationship in 2024 included a roughly $36 million Tempus investment and broader commercialization efforts covering breast and lung cancers and immunotherapy monitoring across solid tumors. The acquisition would bring the technology and commercial infrastructure under common ownership as clinical adoption and reimbursement coverage expand.
“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.
Personalis develops genomics tests intended to detect small traces of circulating tumor DNA, allowing clinicians to monitor treatment response, residual cancer and recurrence. Its NeXT Personal platform had Medicare coverage in three indications, with further coverage anticipated. Personalis reported preliminary second-quarter revenue of $22.4 million and delivered 10,384 clinical tests during the period, a 33% increase from the preceding quarter. Those capabilities would extend Tempus’ reach from diagnosis and treatment selection through recurrence monitoring while creating additional opportunities for biomarker discovery.
The transaction followed Tempus’ agreement in 2024 to acquire Ambry Genetics for $600 million in cash and stock, a purchase designed to expand its testing capabilities in hereditary cancer risk and other disease categories. Together, the Ambry and Personalis deals reflected Tempus’ effort to assemble testing assets around its data and AI platform, spanning inherited risk, treatment selection and ongoing cancer surveillance.
Both companies’ boards approved the Personalis transaction. Closing was expected in late 2026 or early 2027, subject to approval by Personalis shareholders, applicable regulatory clearances and other customary conditions. Any cash consideration would be funded with cash on hand and borrowings under its existing credit facilities, leaving shareholder approval and regulatory review as the principal steps before Personalis’ MRD platform could be fully integrated into Tempus.