Abbott Laboratories has announced a landmark agreement to acquire cancer-diagnostics specialist Exact Sciences in a deal valued at up to $23 billion, including debt. The acquisition marks Abbott’s largest strategic move in nearly a decade and signals its most significant push into the fast-growing cancer screening and diagnostics market.

The acquisition will bring two of Exact Sciences’ most influential early-detection tools into Abbott’s global diagnostics ecosystem: Cologuard, the leading at-home colorectal cancer screening test, and Oncotype DX, an advanced diagnostic used for early-stage breast cancer treatment decisions.

The deal is expected to help stabilize Abbott’s diagnostics revenue, which has declined following the rapid drop-off in COVID-19 testing demand.

Abbott to Pay 22% Premium; Exact Sciences Shares Surge

Abbott agreed to pay $105 per share in cash, representing a roughly 22% premium to Exact Sciences’ last closing price. Following the announcement, Exact shares surged more than 18% to $102.10 in premarket trading, while Abbott shares slipped about 1%, reflecting investor concerns over acquisition costs and near-term earnings pressure.

According to Bernstein analyst Christian Moore, the offer values Exact Sciences at levels unseen since 2023. While the premium underscores confidence in the strategic value of cancer diagnostics, Moore noted that Abbott’s earnings multiples may face compression in the short term.

The transaction reflects an equity value of approximately $21 billion and includes the assumption of around $1.8 billion in net debt.

Short-Term Dilution Expected, but Revenue Expansion Likely

Abbott said the acquisition will be dilutive to adjusted earnings per share through 2027, suggesting a multi-year integration and investment phase. While Exact Sciences is a strong revenue generator, the high purchase price and lack of early synergies could weigh on Abbott’s near-term financial performance.

Moore also questioned the strategic alignment of the deal, noting Abbott’s limited oncology presence. However, analysts agree that cancer screening represents one of the most rapidly expanding segments of global diagnostics—offering long-term growth opportunities for Abbott.

Exact Sciences to Contribute Over $3 Billion in Annual Revenue

Exact Sciences is expected to generate more than $3 billion in revenue this year, growing at a high-teens organic rate. The acquisition will boost Abbott’s total annual diagnostics revenue to over $12 billion, significantly expanding its molecular and early-detection capabilities.

Abbott’s existing diagnostics business includes:

• Laboratory testing for cardiovascular and infectious diseases
• Rapid diagnostics for illnesses such as COVID-19
• Molecular tests for viruses, genetic markers, and rare conditions

The addition of Exact Sciences’ flagship cancer screening technologies positions Abbott as a more competitive force in precision medicine and early cancer detection—fields that are expected to grow rapidly as aging populations and preventative care programs expand worldwide.

Deal Expected to Close by Q2 2026

The acquisition is expected to close in the second quarter of 2026, pending regulatory reviews and approval from Exact Sciences shareholders.

If finalized, the deal would be Abbott’s largest acquisition since it purchased St. Jude Medical in 2017 and marks a pivotal strategic shift toward high-growth oncology diagnostics.