Tempus AI: ALERT - TEM to Buy PSNL

Research evidence excerpt

Tempus AI: ALERT - TEM to Buy PSNL

J P M O R G A N North America Equity Research

20 July 2026

Tempus AI Neutral

TEM, TEM US

ALERT - TEM to Buy PSNL Price (17 Jul 26):$52.47

Life Science Tools & Diagnostics

This morning, TEM announced a definitive agreement to acquire Personalis Casey Woodring AC

(PSNL, Not Covered) for $1.5B (net of TEM’s existing ownership interest). The (1-212) 622-9074

news follows recent (Investor’s Business Daily) reports that Merck (MRK, casey.woodring@jpmchase.com

covered by Chris Schott) and at least two other suitors were pursuing PSNL. Under Marta Nazarovets Zaremba

the terms of the agreement, PSNL shareholders will receive $16.25 per share, (1-212) 622-6046

representing a 6% premium to Friday’s closing price (and a 28% premium to the marta.zaremba@jpmchase.com

unaffected 30-day VWAP). The transaction is expected to close in late 2026 or Jaden Rismay

early 2027, subject to PSNL’s shareholder approval as well as other customary (1-212) 622-8479

jaden.rismay@jpmchase.com

closing conditions and regulatory approvals. Recall that in November 2023, TEM J.P. Morgan Securities LLC

entered into a strategic agreement with PSNL in which TEM invested in PSNL and

commercialized PSNL's NeXT Personal MRD test, and while TEM had indicated

at the analyst day that it was pleased with its partnership strategy, management

today noted that it believes the acquisition will build on the legacy partnership by

accelerating PSNL's commercial adoption while strengthening TEM’s multimodal

data set. On the financial impact, TEM continues to expect to be both adj. EBITDA

and FCF positive in 2027, and noted that it will provide additional details on the

transaction’s financial impact and its outlook during its 2Q earnings call on July 30.

• Deal metrics.