Tempus AI Acquires Personalis in $1.5B Deal for Enhanced Testing Capabilities

Tempus AI agreed to a $1.5 billion acquisition of cancer genomics specialist Personalis, a move aimed at enhancing its AI-driven oncology and genomic testing capabilities. The deal is an all-stock transaction with a price of $16.25 per share. The acquisition is expected to strengthen Tempus AI's position in minimal residual disease testing.

Tempus AI (NASDAQ: TEM) has agreed to acquire cancer-genomics specialist Personalis (NASDAQ: PSNL) at $16.25 per share, an enterprise value of about $1.5 billion net of Tempus' existing stake. The consideration is structured as a 100% stock transaction, with Tempus able to elect to pay up to half in cash, and represents roughly a 6% premium to Personalis' prior close and a 28% premium to its unaffected 30-day VWAP.

The deal deepens a partnership the two companies struck in November 2023 and is aimed squarely at minimal residual disease (MRD) testing, a fast-growing area of oncology that tracks whether cancer persists or returns after treatment . Personalis brings scale in that segment: it reported preliminary second-quarter revenue of $22.4 million on 10,384 clinical tests, a 33% sequential jump in volume. Folding those assets into Tempus' AI-driven diagnostics platform is meant to extend its reach across the full patient journey, from diagnosis and treatment selection through recurrence monitoring.

The transaction is expected to close in late 2026 or early 2027, subject to Personalis shareholder and regulatory approval. Because the consideration is largely stock, Personalis holders take on exposure to Tempus' share price between signing and close, and investors will watch integration progress, the cash-versus-stock mix Tempus ultimately elects, and whether the combined MRD franchise can outpace rivals such as Natera and Guardant Health.