Abbott has signed a definitive agreement to acquire all of Exact Sciences’ outstanding shares for an estimated enterprise value of $23bn, marking its entry into the cancer diagnostics sector.

Abbott will purchase the shares at $105 per common share in cash at a total equity value of around $21bn.

The transaction includes the absorption of Exact Sciences’ estimated net debt of $1.8bn.

The Boards of Directors of both companies have unanimously approved the deal, which is expected to close in the second quarter of 2026, pending approval from Exact Sciences’ shareholders, regulatory authorities, and the satisfaction of other customary conditions.

In the current year, Exact Sciences is expected to generate more than $3bn in revenue.

Upon completion, the company will operate as Abbott’s subsidiary, and Abbott’s total diagnostics sales are expected to surpass $12bn annually.

Exact will maintain its operations in Madison, Wisconsin, US.

Chairman and CEO Kevin Conroy will remain with Exact Sciences in an advisory capacity to assist the transition and further the company’s global efforts in cancer detection and management.

Abbott chairman and CEO Robert Ford said: “Abbott has repeatedly taken on the world's most challenging health issues and made a meaningful impact on the lives of people in areas such as diabetes, cardiovascular disease and infectious diseases.

“We are excited to bring Exact Sciences' people and know-how into Abbott so that together, we can take on the global challenge of cancer.”

Morgan Stanley is acting as the exclusive financial advisor to Abbott and has offered fully committed debt financing, while Wachtell, Lipton, Rosen & Katz is acting as legal counsel.

Centerview Partners and XMS Capital Partners are advising Exact Sciences on financial aspects, with Skadden, Arps, Slate, Meagher & Flom providing legal counsel.

Exact Sciences’ portfolio includes the Cologuard and Cologuard Plus non-invasive colorectal cancer screening tests.

The company’s Cancerguard blood test identifies 50 types of cancer including liver, lung, oesophageal, ovarian, pancreatic and stomach cancers.

Its Oncoguard Liver Test is designed to identify widespread liver cancer in individuals with cirrhosis or chronic hepatitis B.

Earlier this month, Exact Sciences reported results from the ALTUS trial of its Oncoguard Liver blood test for early-stage hepatocellular carcinoma.