Roche has entered into a definitive merger agreement to acquire Boston-based PathAI, a developer of AI-powered digital pathology tools, in a deal valued at up to $1.05 billion.

The acquisition is expected to close in the second half of 2026, pending regulatory approvals and other customary conditions. Roche said it will pay $750 million upfront, with up to $300 million tied to milestone payments.

PathAI develops software for pathology laboratories and biopharma companies, including its AISight image management system, which combines digital slide management with AI-based analysis and workflow tools. Roche plans to integrate the platform into its existing digital pathology business.
The companies have worked together since 2021 and expanded their partnership in 2024 to include development of AI-enabled companion diagnostics.

Roche said the acquisition is intended to strengthen its position in digital pathology, where laboratories are increasingly replacing manual slide review processes with digitized workflows and AI-assisted analysis. The technology is also being used to support biomarker discovery and clinical trial development in precision medicine programs.

“Digital pathology has the potential to improve precision diagnosis of cancer and enable physicians to offer better-tailored treatment regimens,” Matt Sause, CEO of Roche Diagnostics, said in a statement. “Bringing PathAI into Roche Diagnostics will allow us to combine their best-in-class digital pathology tools with our leading oncology diagnosis platforms.”

PathAI’s technology is used in pathology workflows as well as translational research and drug development applications. Roche said combining the company’s AI capabilities with its companion diagnostics business could help accelerate development of new biomarkers and diagnostic tools for biopharma customers.

“Joining forces with Roche marks a new era for PathAI, enabling us to realize our mission of improving patient outcomes through AI-powered pathology at unprecedented scale and speed,” PathAI cofounder and CEO Andy Beck said in a statement.

The acquired business will become part of Roche’s Diagnostics division after the transaction closes.

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