Tempus AI to Acquire Ambry Genetics for $600 Million
Tempus AI has announced its acquisition of Ambry Genetics, from KONICA MINOLTA, INC. for $600 million, comprising $375 million in cash and $225 million in shares. This strategic acquisition expands Tempus’ capabilities in hereditary cancer screening and genetic testing, adding to its precision medicine offerings. Ambry Genetics, originally founded in 1999 by Charlie Dunlop in San Diego, was sold to Konica Minolta in 2017 for $1 billion.
Ambry, headquartered in Aliso Viejo, California, will continue to operate as a wholly owned subsidiary of Tempus, retaining its employees and full testing menu. CEO Eric Lefkofsky explained that this acquisition supports Tempus' objective to provide comprehensive, continuous patient care:
"It’s critical to us because we want to capture patients early, support them during treatment, and monitor their disease progression over time," he said, emphasizing the efficiency of partnering with a single, integrated lab solution.
The purchase of Ambry follows Tempus' acquisition of SEngine Precision Medicine, founded by Dr. Carla Grandori, which brought in an organoid biobank and PARIS testing platform. These recent acquisitions indicate Tempus’ strategic expansion into the immunotherapy testing space in precision medicine.
The Ambry transaction, funded through a $300 million increase in short- and long-term debt, aligns with Tempus' plan to broaden its testing portfolio and enter new areas, including pediatrics, rare diseases, immunology, reproductive health, and cardiology.
Ambry is projected to generate $300 million in revenue in 2024, with a growth rate of over 25% annually, making it a promising financial addition for Tempus. The deal is expected to finalize in the first quarter of 2025.
Tempus AI reported third-quarter 2024 results with a 33% revenue increase to $180.9 million, driven by significant growth in data, services, and genomics, alongside a narrowed adjusted EBITDA loss, projecting approximately $700 million in full-year revenue, a 32% annual growth.
Cover image: Tempus
Topics: Startups & Deals
