Tempus AI to buy Personalis in $1.5bn deal

Tempus AI Inc. (TEM) has reached a definitive agreement to acquire Personalis Inc., a cancer-testing company, in a transaction that assigns Personalis an equity valuation of $1.7 billion. The deal values the company at about $1.5 billion including debt and is based on an agreed price of $16.25 per Personalis share. This purchase price represents a 5.6% premium to Personalis’ most recent closing share price cited before the announcement.

The agreement positions Tempus to expand its presence in data-driven oncology and tailored disease prevention and treatment. Personalis’ focus on precision cancer testing aligns with Tempus’ use of artificial intelligence to support personalized care. The acquisition brings together a diagnostics-focused business with a company emphasizing AI-enabled clinical insights.

Under the terms of the agreement, Personalis shareholders will receive consideration valued at $16.25 per share. The transaction is structured as a stock-heavy deal using a floating exchange ratio, capped at 0.3356 Tempus common shares for each Personalis share. Tempus also retains the option to fund up to 50% of the total consideration in cash rather than stock.

Multiple reports describe the overall valuation as about $1.5 billion including debt, while also referencing an equity valuation of $1.7 billion, reflecting different ways of presenting the headline figure. Despite these variations, the price-per-share and the stock-based nature of the consideration are consistent across descriptions of the transaction.

The companies expect the acquisition to close in late 2026 or early 2027. Completion of the deal is subject to the approval of Personalis shareholders, as well as regulatory approvals and other customary closing conditions. Until closing, both companies are expected to continue operating independently while preparing for integration.

The relatively long expected timeline to completion means the transaction will span multiple reporting periods for both companies. The use of a floating exchange ratio introduces sensitivity to Tempus’ share price over that period, within the stated cap on the number of Tempus shares issuable per Personalis share.

Personalis has reported preliminary second-quarter 2026 revenue of $22.4 million. The company processed 10,384 clinical tests in the quarter, marking a 33% sequential increase in test volumes. These figures indicate recent operational momentum in Personalis’ clinical testing business.

This growth in test volume underscores the scale at which Personalis is delivering its cancer-testing services ahead of the planned acquisition. The performance data provide context for the agreed valuation and suggest an expanding base of clinical activity that Tempus would be acquiring as part of the transaction.