Abbott acquires Exact Sciences

Abbott Laboratories is set to acquire Exact Sciences for approximately $21 billion following decisive shareholder approval, marking a strategic move to enhance Abbott's diagnostics division. The acquisition will proceed at a purchase price of $105 per share in cash. This transaction, pending final regulatory approval and other customary conditions, highlights a significant consolidation in the diagnostics sector.

Exact Sciences shareholders overwhelmingly backed the acquisition at a special meeting, with over 99% of votes supporting the deal. Exact Sciences, known for its Cologuard test for colorectal cancer, generated $3.25 billion in revenue in 2025, marking an 18% increase over the previous year. This strong growth trajectory validates Abbott’s decision to invest heavily in Exact Sciences. The acquisition bolsters Abbott’s competitive position, allowing it to capitalize on Exact Sciences' robust diagnostics capabilities and expand its market footprint.

Abbott is committed to growth but maintains its position as a preferred choice for income-oriented investors. The company has simultaneously declared a quarterly dividend of $0.63 per share, continuing its 54-year streak of annual dividend increases and underscoring its "Dividend Aristocrat" status. This balance between growth and consistent income streams remains a cornerstone of Abbott’s strategy.

The integration of Exact Sciences is expected to aid Abbott in achieving projected organic sales growth targets of 6.5% to 7.5% in 2026, with anticipated adjusted earnings per share ranging from $5.55 to $5.80. Despite the strategic implications of the acquisition, market response has been tepid, with Abbott shares trading flat at €95.21, leaving the stock about 10% lower year-to-date.

The acquisition's finalization is expected by the end of the second quarter of 2026, contingent on regulatory clearance and customary closing conditions. Once these are satisfied, Abbott will begin integrating Exact Sciences' operations, effectively enhancing its diagnostics portfolio.