Abbott
(NYSE: ABT)
announced today that it agreed to acquire diagnostics maker Exact Sciences (Nasdaq:EXAS) for approximately $21 billion.
Confirmation of the deal comes just one day after reports initially suggested that Abbott and Exact Sciences were in negotiations. Shares of EXAS skyrocketed by more than 20% in response to the report. The deal allows Abbott to enter and lead in the growing cancer diagnostics segment.
Under the agreement, Exact Sciences shareholders receive $105 per common share. It represents a total equity value of approximately $21 billion.
Madison, Wisconsin–based Exact Sciences develops cancer screening and diagnostic tests. Its portfolio includes the flagship Cologuard, a non-invasive test to screen for colorectal cancer. It provides an alternative to colonoscopy that requires no bowel preparation, sedation and clinical visits. The test can take place at home by collecting a stool sample and mailing it to a lab.
The company also offers the established Oncotype Dx, alongside the Cancerguard test for multi-cancer early detection and the Oncodetect test for molecular residual disease and recurrence monitoring.
“Together with Abbott, we can reach more patients, advance earlier detection, and deliver answers that change lives. Abbott’s culture of innovation and global commercial reach will help accelerate our mission of eradicating cancer and expanding access to our tests worldwide, while delivering immediate and substantial value to our shareholders,” said Kevin Conroy, chair and CEO of Exact Sciences. “I want to thank the 7,000 Exact Sciences’ team members for their extraordinary work and dedication — our journey has just begun.”
Commentary from Abbott CEO Robert Ford
Abbott CEO Robert Ford told analysts this morning that the companies expect to accelerate innovation, expand access to diagnostics and help more people detect and manage cancer at its earliest, most treatable stages.
“Throughout our history, Abbott has stood at the forefront of taking on the world’s most pressing healthcare challenges. We’ve transformed care and diabetes, pioneered breakthroughs in the treatment of cardiovascular disease and delivered solutions that combat infectious diseases, and today, we’re expanding our mission to add cancer to that list,” Ford said. “This acquisition further strengthens Abbott’s leadership position in diagnostics and expands our presence into one of the fastest growing areas of healthcare.”
Ford said that Exact Sciences projects more than $3 billion in revenue this year. It expects organic sales growth in the high teens and an adjusted gross margin profile of more than 70%.
According to Ford, Abbott found the deal attractive because of the clear clinical and medical need for Exact Sciences’ cancer tests.
“I see this as a very unique company in this space,” he said.
Financial and operational details of the deal
Under the agreement, Abbott acquires Exact Sciences at an equity value of $21 billion and an estimated enterprise value of $23 billion. Its financing contemplates the absorption of Exact Sciences’ estimated $1.8 billion in net debt.
Abbott anticipates the deal closing in the second quarter of 2026, subject to Exact Sciences shareholder approval and other regulatory nods and closing conditions. Both companies’ boards of directors approved the transaction unanimously.
Once they complete the deal, Exact Sciences becomes a subsidiary of Abbott, bringing the medtech giant’s total diagnostic sales beyond $12 billion annually. Abbott expects to realize $100 million in synergies from the deal through 2028.
After the closing, Abbott plans for Exact Sciences to maintain its presence in Madison. Conroy intends to remain with the company in an advisory role to support the transition into Abbott.
The analysts’ response
BTIG and William Blair analysts both responded to the initial reports of a deal yesterday, seeing the value and rationale in the acquisition.
BTIG’s Marie Thibault, Sam Eiber and Alexandra Pang wrote that they expected an enterprise value of around $18–20 billion. At $23 billion in enterprise value, the deal even exceeds that lofty expectation.
They note that the acquisition could allow Abbott to use its primary care channel presence to sell Cologuard, much like its Libre CGMs. It also brings savvy and direct-to-consumer expertise to potentially scale and increase market penetration.
“In terms of size, this potential deal would rival the likes of Johnson & Johnson’s acquisition of Abiomed in 2022 and Siemens Healthineers’ acquisition of Varian in 2021,” the analysts said.
William Blair analysts Andrew F. Brackmann, Maggie Boeye and Kate Janson say this wasn’t the first mention of the two companies in talks over a deal like this, with initial suggestions coming back in May.
“On the surface, we see strategic rationale to the acquisition for Abbott,” they wrote. “Similar to Abbott, Exact has strong brand power for its products (Cologuard and Oncotype), has a significant primary care salesforce that can be further leveraged, and has a pipeline of compelling products that can pad top-line growth for years to come. Abbott has not participated in the fast-growing oncology diagnostics market, and Exact would allow for a platform to do just that.”
Editor-in-chief Chris Newmarker contributed to this report.
