Abbott's $21 Billion Acquisition of Exact Sciences: Breaking Down the Deal

Exact Sciences (NASDAQ: EXAS) experienced a sharp surge, climbing 50.7% through Thursday afternoon following a major acquisition announcement. The rally caps off strong momentum that had already built up after the company delivered better-than-expected earnings earlier in the month.

The Acquisition Details

On Thursday morning, Abbott Laboratories (NYSE: ABT) and Exact Sciences confirmed a definitive acquisition agreement. Abbott will acquire Exact Sciences for $21 billion, translating to $105 per share. This represents approximately a 59% premium to Wednesday’s trading price before acquisition rumors surfaced.

At the time Bloomberg initially reported the merger talks on Wednesday, Exact Sciences carried a market capitalization of $13.2 billion. For Abbott, the acquisition represents a strategic move to expand its cancer diagnostics portfolio and strengthen its position across multiple high-growth markets.

Market Opportunity Behind the Deal

The acquisition targets several substantial market segments served by Exact’s existing product portfolio. These include the $45 billion colon and multicancer screening market, the $5 billion treatment guidance technology sector, and the $15 billion molecular residual disease detection market. Abbott’s acquisition signals confidence in Exact’s ability to capture share within these expanding therapeutic areas where diagnostic precision increasingly matters to lab technician workflows and clinical decision-making.

Current Valuation vs. Historical Performance

While shareholders benefit from the 59% premium, the $105 buyout price remains notably below Exact’s historical peaks. During 2021, the stock traded near $160 per share at its highs—meaning the current deal price sits approximately 33% below those levels. For investors holding shares since the peak, the acquisition represents partial recovery but not a return to previous valuations.

Investment Implications Going Forward

The deal is projected to close in the second quarter of 2026, pending regulatory approval. With shares currently trading around $101 per share, the remaining upside to the acquisition price amounts to less than 4% over the approximately six-month timeline.

For existing shareholders, this limited upside creates an important decision point. Those with alternative investment opportunities offering stronger six-month return potential may find it advantageous to exit their positions either immediately or defer the transaction into early 2027 for tax planning purposes.