Tempus AI, a healthcare technology company, is buying cancer testing firm Personalis for $1.5 billion. After the announcement on Monday, shares of both companies fell.
Tempus shares dropped 8.8%, while Personalis fell 9.4%. Tempus is set to close lower for the fourth day in a row and has slipped below its 50-day moving average. The stock is now down 18% for the year.
ARK Invest, led by Cathie Wood, has increased its Tempus holdings during the stock’s recent decline. If Tempus falls below a key technical level, the firm may buy even more shares.
According to Monday’s announcement, Tempus will buy all remaining Personalis shares for $16.25 each. This values the deal at $1.5 billion, a 5.6% premium over Personalis’ closing price on Friday. Tempus already owns 12.5% of Personalis and expects the deal to close by the end of this year or early 2027.
Tempus uses artificial intelligence in precision medicine and patient care. The company said buying Personalis will help it support patients at every stage, from diagnosis and treatment to monitoring for recurrence. Personalis’ CEO said the deal came after a thorough review and that Tempus’ offer gives shareholders the best value while helping bring Personalis’ cancer testing to more patients.
Now, both companies need to convince investors who remain skeptical.
