Roche agreed to acquire PathAI in a deal potentially worth up to $1.05 billion, aiming to expand its digital pathology capabilities and accelerate AI-enabled diagnostic workflows. The structure includes a $750 million upfront payment and up to $300 million in milestone payments tied to performance. Roche said it will merge PathAI into its Diagnostics division after closing, targeted for the second half of 2026, subject to customary approvals including antitrust review. The acquisition is intended to broaden global scaling of PathAI’s Image Management System (IMS) that integrates analysis and workflow functions in digital pathology labs. Roche and PathAI began partnering in 2021 and expanded collaboration in 2024 to support AI-enabled companion diagnostic algorithms. Roche has also highlighted PathAI’s regulatory traction, including an FDA qualification for a tool supporting clinical evaluation in fatty liver disease trials.