Abbott's $21 Billion Exact Sciences Buyout Reshapes Cancer Diagnostics

Abbott Laboratories (NYSE:ABT) agreed on Thursday to acquire cancer screening company Exact Sciences Corp (NASDAQ:EXAS) for $105 per common share, representing a total equity value of approximately $21 billion and an estimated enterprise value of $23 billion.

The buyout marks the biggest deal of the year in the global health-care sector.

Bloomberg first reported the potential multi-billion-dollar deal.

Exact Sciences' diagnostic tests include Cologuard, a colorectal cancer diagnostic test. It's been used to screen for colorectal cancer 20 million times since receiving FDA approval in 2014, according to Exact Sciences' website.

Bloomberg noted that Abbott has been signaling interest in bolstering its diagnostics business through M&A, with CEO Robert Ford reiterating the strategy during the July quarterly results.

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A potential acquisition of Exact Sciences would mark Abbott's largest deal in nearly 10 years and its second-biggest overall.

Bloomberg Intelligence analysts said Wednesday that Abbott could deploy up to $30 billion for debt-financed acquisitions, supported by low 1.3x leverage and roughly $7 billion in annual free cash flow.

Abbott’s financing contemplates the absorption of Exact Sciences’ estimated $1.8 billion of net debt.

Diagnostics drove significant gains for Abbott during the pandemic, but sales have tapered. The company has recently leaned more on its medical-device portfolio, led by strong demand for glucose monitors.

Acquisition adds a new growth vertical to Abbott’s high single-digit growth profile, gaining leadership in the fast-growing $60 billion U.S. cancer screening and precision oncology diagnostics segments.

William Blair said a buyer would likely need to pay 6–7x forward sales, implying a premium of more than 35% to the stock's current multiple of just under 5x and about 20% above its five-year average of 5.6x.

The firm added that this range is consistent with valuations of smaller but similarly profitable, high-growth lab peers.

William Blair's earlier DCF work suggested a conservative path to $80 per share, but noted any acquisition would need to come in well above that level — likely north of $100.

Analyst Andrew F. Brackmann on Wednesday said, “We continue to rate shares of both Abbott and Exact Sciences at Outperform. At a minimum for Exact, this should create a valuation floor moving forward as it drives Cologuard growth acceleration and margin expansion into 2026.”

The deal is expected to close in the second quarter of 2026.

Exact Sciences is projected to generate more than $3 billion in revenue in 2025, with an organic sales growth rate in the high teens.

Once the transaction is completed, Exact Sciences will become a subsidiary of Abbott, and Abbott’s total diagnostics sales will exceed $12 billion annually.

Price Action: EXAS stock is up 17.43% at $101.20, and ABT stock is up 0.27% at $126.49 during the premarket session at the last check on Thursday.

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