Investing.com -- Shares of Tempus AI , Inc. (NASDAQ:TEM) climbed 5% in pre-open trading Tuesday following the completion of its acquisition of Ambry Genetics, a company known for its genetic testing services that contribute to understanding the relationship between genetics and disease. In addition, shares are being bolstered by the success of fellow AI company Palantir (NASDAQ:PLTR) following strong earnings after the close. Palantir is up 24% in pre-open trading.
The strategic move is expected to enhance Tempus AI's capabilities in delivering innovative solutions to healthcare professionals, patients, and life sciences companies. Eric Lefkofsky, Founder and CEO of Tempus, emphasized the acquisition's alignment with the company's strategy to integrate diagnostics and data for driving innovation and improving patient outcomes through technology.
The transaction, which was previously disclosed in the third quarter of 2024, involved Tempus AI paying $375 million in cash and $225 million in shares at closing. A portion of the shares, valued at $100 million, is subject to a one-year lock-up post-transaction. Ares Management's (NYSE:ARES) Credit funds provided financing for the deal. Ambry Genetics will continue to operate as a wholly-owned subsidiary under its current leadership team.
The positive market response also reflects the company's strong performance over the past month, with shares surging 51%. This uptick in Tempus AI's stock value coincides with Senator Nancy Pelosi's disclosure of purchasing 50 call options in the AI firm, with a strike price of $20 and an expiration date of January 16, 2026, valued between $50,000 to $100,000 in mid-January.
This acquisition is a significant step for Tempus AI as it seeks to solidify its position in the precision medicine and patient care sectors by leveraging advanced technologies. The market's reaction suggests investor confidence in the company's growth trajectory and potential to create value through strategic expansions.
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