Company: TEM
Filing Date: 2025-02-25
Form Type: S-1
Source: 0001193125-25-034442
Chunk: 7

Company: Tempus AI, Inc.
Filing Date: 2025-02-25
Form: S-1
Chunk 7
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 thereby creating network effects in each of the markets in which we operate. Our Genomics product line leverages our
state-of-the-art laboratories to provide next generation sequencing, or NGS diagnostics, polymerase chain reaction, or PCR,
profiling, molecular genotyping and other anatomic and molecular pathology testing to healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties. The data generated in our lab or ingested into our
platform is structured and de-identified, prior to commercialization. This de-identified database is then commercialized to our pharmaceutical and biotechnology partners
to facilitate drug discovery and development through two primary Data and Services products, Insights and Trials. Our third product line, AI Applications, is focused on developing and providing diagnostics that are algorithmic in nature,
implementing new software as a medical device, and building and deploying clinical decision support tools.

1

Acquisition of Ambry Genetics Corporation

On November 4, 2024, we entered into the Purchase Agreement with the Seller and the Seller’s ultimate parent, Konica
Minolta, Inc., a Japanese corporation, as guarantor, pursuant to which we agreed to purchase all of the outstanding shares of capital stock of Ambry Genetics Corporation, a leader in genetic testing that aims to improve health by understanding the
relationship between genetics and disease. Such transaction is hereinafter referred to as the Acquisition. Pursuant to the terms of the Purchase Agreement, consideration for the Acquisition consisted of $375.0 million in cash, subject to
adjustment for cash, unpaid indebtedness, unpaid transaction expenses and net working capital of Ambry, or the Cash Consideration, plus the issuance of an aggregate of 4,843,136 shares of our Class A common stock, or the Stock Consideration. We
issued the Shares as Stock Consideration to the Seller on February 3, 2025 upon the closing of the Acquisition. Pursuant to the terms of the Purchase Agreement, 2,152,505 of the Shares held by the Seller are subject to a lock-up for a period of one year following the closing date of the Acquisition.

The
Shares issued to the selling stockholder as Stock Consideration for the Acquisition have not been registered under the Securities Act of 1933, as amended, or the Securities Act, and were issued in reliance on an exemption from such registration. We
are registering the resale of the Shares as required by the registration rights contained in the Purchase Agreement.

Corporate Information

We were founded by Eric L