Abbott Laboratories made plans to enter the cancer screening market with its reported acquisition of Exact Sciences Corp. The deal will pay Exact Sciences shareholders $105 per share in cash, a nearly 50% premium to Exact’s unaffected share price on Nov. 19. That represents a total equity value of approximately $21 billion and an estimated enterprise value of $23 billion.

Abbott's financing also includes absorption of Exact Sciences' estimated $1.8 billion of net debt.

The Abbott-Exact deal is now the largest M&A in 2025, eclipsing the Hologic Inc. agreement in October to be acquired by funds led by Blackstone and TPG in a transaction valued at $18.3 billion.

The deal to buy Exact also marks Abbott’s biggest acquisition since its $23.6 billion buy of device maker St Jude Medical in 2017.

Exact holds keys to growing sector

Madison, Wisc.-based Exact Sciences focuses on the early detection of cancer and supporting personalized treatments. Its product offerings support patients and their health care providers before, during and after a cancer diagnosis. The company is a leader in cancer screening, precision oncology and genetic testing, helping to detect cancer earlier, guide treatment decisions and monitor for recurrence.

Its product offerings include the Cologuard test, a noninvasive colorectal cancer screening option; Oncotype DX, which informs personalized treatment decisions for patients with breast cancer; Oncodetect, which identifies molecular residual disease to help assess the risk of recurrence and guide follow-up care; and Cancerguard, a multi-cancer early detection blood test.

"Exact Sciences' innovation, its strong brand and customer-focused execution are unrivaled in the cancer diagnostics space, and its presence and strengths are complementary to our own," said Robert Ford, chairman and CEO of Abbott.

"Together with Abbott, we can reach more patients, advance earlier detection, and deliver answers that change lives," said Kevin Conroy, chairman and CEO of Exact Sciences. "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.

The closing of the deal is expected in the second quarter of 2026 and is subject to Exact Sciences' shareholder approval, as well as receipt of applicable regulatory approvals and other customary closing conditions. The transaction was unanimously approved by both companies' boards of directors.

Exact Sciences is projected to generate more than $3 billion in revenue this year, with a high teens organic sales growth rate. Once the transaction is completed, Exact Sciences will become a subsidiary of Abbott, and Abbott's total diagnostics sales will exceed $12 billion annually.

Following the closing, Exact Sciences will maintain its presence in Madison, Wisc. Kevin Conroy will remain with the company in an advisory role to support the transition into Abbott and accelerate its global impact in helping to eradicate cancer worldwide.

Abbott Park, Ill.-based Abbott’s diagnostic division manufactures tests for infectious diseases, such as HIV and tuberculosis, as well as making blood glucose monitoring devices for diabetics. It was boosted by huge demands for COVID-19 tests during the pandemic but that has since abated.

Analysts’ take

Leerink Partners analysts wrote in a research note on the deal that they believe “this is a major sector defining event in diagnostics that sets stage for recognition of cancer diagnostics from early-stage screening to late-stage cancer tests.” They also noted that they think the transaction is a big positive for the sector “and the cancer diagnostic names in our coverage and beyond.” The transaction “also places a valuation floor for such deals and is the largest such deal in the space.”

The Leerink analysts said that additional competitive bids as unlikely given a limited number of potential acquirers (diversified companies with sizable Dx in portfolio), especially as there have been rumors that Exact has been in play for some months and we believe another bidder would have likely already emerged.

Wells Fargo analysts note in a research note that Abbott sees the "next-era" of diagnostics as more preventative, predictive, and personalized. Abbott noted Exact’s technical excellence, which will combine with Abbott’s global scale and strong wordwide relationships with health care systems. “This deal aligns with Abbott’s M&A goal of creating and building new growth verticals,” they said.