Abbott Laboratories has launched a corporate bond sale in as many as eight tranches to finance its $21 billion acquisition of cancer-screening company Exact Sciences Corp. The medical device giant is tapping debt markets to fund the all-cash transaction, which was announced in early March 2025. This marks Abbott's largest acquisition to date and its most significant expansion into the diagnostics sector.

Exact Sciences specializes in early cancer detection through its Cologuard DNA screening test for colorectal cancer. The Wisconsin-based company has been a leader in non-invasive cancer diagnostics, making it an attractive target for Abbott's diagnostics division. The bond sale comes as corporate borrowing costs remain elevated following Federal Reserve rate hikes, though investor demand for high-grade corporate debt remains strong. Abbott's A2/A credit rating should help secure favorable terms for the offering.

The acquisition represents a major strategic shift for Abbott as it seeks to diversify beyond its traditional medical device business. By combining Exact Sciences' screening technology with Abbott's global distribution network and diagnostic capabilities, the company aims to create a comprehensive cancer detection platform. The deal is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions.