Tempus AI NASDAQ:TEM, a Chicago-based healthcare technology company using artificial intelligence for tailored disease prevention and treatment, has agreed to acquire Personalis NASDAQ:PSNL, a California-based cancer-testing company, in a transaction giving Personalis an equity valuation of $1.7 billion. Tempus will pay $16.25 per share, valuing the deal at $1.5 billion including debt and offering Personalis shareholders a 5.6% premium to Friday's closing price. The acquisition is expected to close in late 2026 or early 2027, potentially expanding Tempus' position in AI-enabled precision oncology.
Investors reacted cautiously to the announcement, with Tempus shares falling as much as 9.2% to $47.65 in New York and Personalis dropping as much as 15% to $13.15. The market response suggests investors may be assessing the transaction's valuation and long closing timeline against the potential benefits of combining the companies more closely. Tempus and Personalis have already worked together since late 2023, while Tempus owns about 12.5% of Personalis shares and ranks as its second-largest shareholder.
The deal is intended to integrate Personalis' molecular residual disease testing more tightly into Tempus' artificial intelligence-based precision oncology platform. The transaction comes as more companies bring artificial intelligence into clinical and healthcare research, including drug discovery, medical imaging analysis and diagnostic support. OpenAI, a general-purpose artificial intelligence developer, and Anthropic, an artificial intelligence company offering chatbot technology, have introduced healthcare-focused versions of their chatbots this year, while Bloomberg Intelligence analyst Jonathan Palmer said the strategic case for the Tempus-Personalis deal was strong because the companies' existing agreement was scheduled to continue through 2029.