Cancer diagnostic firms to join in $2.8 billion deal

Cancer diagnostic companies Exact Sciences and Genomic Health are combining in a $2.8 billion a cash-and-stock deal.

The companies said Monday that they expect to generate revenue of $1.6 billion and gross profit of $1.2 billion in 2020. The deal is expected to close this year.

For each share of Genomic Health they own, shareholders will receive $27.50 in cash and $44.50 in shares of Exact Sciences, subject to a 10% "collar" in case of big stock price fluctuations.

Genomic Health Inc., based in Redwood City, California, specializes in genomic-based diagnostic tests for use in cancer care. Exact Sciences Corp., based in Madison, Wisconsin, focuses on early detection of cancer.