Abbott has announced a landmark deal to acquire cancer test maker Exact Sciences for up to $23 billion, including debt, marking one of its largest purchases in nearly a decade and a bold move into the fast-growing cancer diagnostics market.

The acquisition will bring Exact's flagship tests, including the colorectal cancer test Cologuard and the early-stage breast cancer test Oncotype DX, into Abbott's diagnostics portfolio. The move is designed to help offset revenue declines from Abbott's COVID-19 testing kits and to strengthen its position in the global diagnostics space.

Abbott will pay $105 per share in cash, representing a near 22% premium over Exact Sciences' last closing price. Exact shares surged nearly 18% on the news, while Abbott’s dipped slightly by 1%. The transaction includes an equity value of about $21 billion and the absorption of Exact’s estimated net debt of $1.8 billion.

International expansion is at the core of Abbott’s strategy for the acquisition, as most of Exact’s revenue is currently generated in the U.S. Abbott plans to broaden the reach of Exact's tests and secure widespread reimbursement coverage. CEO Robert Ford said the deal is expected to help drive Abbott's total diagnostics sales to more than $12 billion annually, building on Exact’s projection of over $3 billion in revenue this year.

The acquisition is expected to be dilutive to Abbott by 20 cents per share in 2026 and 16 cents in 2027, but double-digit earnings growth is expected to return by 2027. The transaction is anticipated to close in the second quarter of 2026, with analysts not expecting major regulatory hurdles given the competitive landscape of the diagnostics industry.