Abbott said on Thursday it would buy cancer test maker Exact Sciences in an up to $23 billion deal, bolstering the medical device maker's diagnostics business.

This marks one of Abbott's largest deals in nearly a decade and its first major push into cancer screening with preventative diagnostic devices.

The transaction would bring Exact Sciences' flagship colorectal cancer test Cologuard into Abbott's diagnostics portfolio, helping offset revenue declines from its COVID-19 testing kits.

As part of the agreement, Exact Sciences shareholders will receive $105 apiece in cash, implying a premium of about 21.8% to the stock's last closing price. Exact shares jumped 18% in premarket trading, while Abbott was down nearly 2%.

The deal is expected to close in the second quarter of 2026 after Exact Sciences' shareholder approval.