Fulgent Genetics, Inc. completed the acquisition of Bako Diagnostics and StrataDx on March 17, 2026, paying $56.9 million in cash. The deal, announced earlier in December 2025, valued Bako at $43.4 million and StrataDx at $13.5 million.
The transaction was funded entirely from Fulgent’s cash reserves, with no new debt or equity issued. The company confirmed that the cash on hand was sufficient to cover the purchase and maintain liquidity for ongoing operations.
Adding Bako’s pathology platform and StrataDx’s dermatopathology expertise expands Fulgent’s laboratory services footprint and supports the company’s goal of building a vertically integrated precision‑medicine platform. The new labs will broaden the testing menu, improve turnaround times, and enhance the company’s competitive position in the growing precision‑medicine market.
CEO Ming Hsieh said, "With the addition of Bako and StrataDx, we will be able to broaden our capabilities in the pathology testing market and further leverage our investments in AI to improve efficiency and quality, which will drive continued momentum in our laboratory services business." He added, "Our business has been growing organically at double‑digit rates for several quarters, and, following closing, we will be able to layer on Bako's services to our testing menu to further strengthen our laboratory services business."
The acquisition is expected to add roughly $50–$55 million in revenue in 2026, helping offset a projected decline in revenue from the company’s largest customer. Fulgent’s Q4 2025 results showed revenue of $83.3 million and a GAAP loss of $23.4 million, while full‑year 2025 revenue was $322.7 million with a GAAP loss of $60.5 million. The new labs are anticipated to contribute to a more diversified revenue mix and reduce concentration risk.
Investors reacted cautiously to the announcement, with valuation concerns dampening enthusiasm for the acquisition. The market viewed the deal as a strategic step toward a more integrated service offering, but the company’s recent financial performance and guidance left some investors wary.
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