Write a 500-word analytical article discussing the acquisition agreement between Tempus AI and Ambry
Genetics. Provide an intro of Ambry Genetics followed by the details of the agreement. Mention the
current relation between Tempus AI and Ambry Genetics. Provide details on how the acquisition will
benefit Tempus AI.
Tempus AI to buy genetic testing company for $600M
CEO Eric Lefkofsky said the purchase of Ambry Genetics will expand Tempus’ testing portfolio and bring
in a fast-growing business.
Tempus AI agreed to buy genetic testing company Ambry Genetics for $375 million in cash and $225
million in shares.
On November 4, 2024, Tempus AI, Inc. entered into an acquisition agreement with REALM IDx, Inc., a
Delaware corporation, and its parent company, Konica Minolta, Inc., a Japanese corporation, pursuant to
which the Company agreed to purchase all of the outstanding shares of capital stock of Ambry Genetics
Corporation, a Delaware corporation (“Ambry”), a leader in genetic testing that aims to improve health
by understanding the relationship between genetics and disease.
Chicago-based Tempus, which makes AI-enabled precision medicine solutions, said the purchase will
provide expanded testing capabilities for inherited cancer risk. Ambry, based in Aliso Viejo, California, is a
leader in hereditary cancer screening and currently serves as Tempus’ main reference lab in the category,
Tempus said in the Monday announcement.
Tempus also expects the acquisition to expand the company into new disease categories including
pediatrics, rare disease, immunology, reproductive health and cardiology.
Tempus CEO Eric Lefkofsky told investors on a Monday earnings call that Tempus currently offers
hereditary testing and it’s one of the company’s main product categories.
“It’s critical to us because we want to capture patients early, we want to be there for them when they’re
being treated, we want to be there monitoring their disease over time,” Lefkofsky said. The Ambry
acquisition fits into the company’s belief that “more and more physicians and care teams and oncologists
are going to want to work with those labs that can help them treat their patients from beginning to end
and not work with five different labs,” the CEO added.
In a letter to customers, Ambry CEO Tom Schoenherr said Ambry will operate as a wholly owned
subsidiary of Tempus, retain employees and continue its full menu of testing services.
Tempus will pay $600 million in total consideration for Ambry — $375 million in cash and $225 million in
equity over the next year. The company will finance the deal through a $300 million increase in short-
and long-term debt.
Ambry is expected to generate $300 million in revenue in 2024, and its revenues are growing by more
than 25% per year, Lefkofsky said in a statement.
The acquisition is expected to close in the first quarter of 2025.
