Fulgent Genetics to Acquire Bako Diagnostics Assets and StrataDx in Strategic Expansion of Specialty Pathology and AI-Driven Laboratory Services
Fulgent Genetics a technology-enabled diagnostics and therapeutics company, today announced it has entered into a definitive agreement to acquire selected assets of Bako Diagnostics, a nationally recognized specialty pathology laboratory, along with the acquisition of StrataDx, a leading dermatopathology laboratory. The transaction represents a significant step in Fulgent’s strategy to expand its laboratory services platform, deepen its pathology expertise, and further integrate advanced digital pathology and artificial intelligence (AI) capabilities across its operations.
Under the terms of the agreement, Fulgent will acquire certain assets of Bako Diagnostics, headquartered in Alpharetta, Georgia, and will acquire StrataDx, based in Lexington, Massachusetts, for a combined purchase price of approximately $55.5 million, subject to customary closing adjustments. The transaction will be funded entirely with cash on hand. The acquisition is expected to close in the first half of 2026, pending the satisfaction of standard closing conditions, including regulatory approvals.
Strengthening a Scalable, Technology-Driven Laboratory Services Platform
Fulgent Genetics has steadily expanded its laboratory services business through a combination of organic growth and targeted acquisitions. The company continues to invest in expanding its test menu through internal research and development, strategic partnerships, and acquisitions, while also increasing patient and provider access by securing incremental managed care contracts that add covered lives nationwide.
At the same time, Fulgent has been scaling its commercial reach through an expanding national sales organization and leveraging its proprietary technology platform to drive efficiency and quality across its operations. This foundational technology infrastructure supports key business functions including bioinformatics, clinical workflow automation, laboratory operations, records management, and AI-enabled analytics.
The planned addition of Bako Diagnostics and StrataDx is expected to meaningfully enhance Fulgent’s laboratory services portfolio. Together, the acquisitions will add specialized pathology products and services, broaden Fulgent’s national customer base, expand its pathology-focused sales organization, and integrate a team of highly experienced pathologists with deep domain expertise.
Overview of Bako Diagnostics
Bako Diagnostics is widely recognized as a premier national provider of specialty laboratory testing services, particularly in the fields of dermatopathology, podiatric pathology, and peripheral neuropathy diagnostics. The laboratory offers a comprehensive testing menu that includes full anatomic pathology services, proprietary molecular genetic assays, and advanced immuno-histochemical testing designed to support accurate diagnosis and clinical decision-making.
Bako is CLIA certified, CAP accredited, and licensed by the Georgia Department of Public Health, underscoring its commitment to regulatory compliance, quality standards, and clinical excellence. Its proprietary testing capabilities, particularly its polymerase chain reaction (PCR)-based assays, are designed to optimize cost efficiency while delivering rapid and clinically actionable results.
Overview of StrataDx
StrataDx is a nationally respected provider of dermatopathology testing services, serving clinicians across the United States. The laboratory has built a strong reputation for diagnostic accuracy, service quality, and clinical expertise in dermatopathology.
Like Bako, StrataDx is CLIA certified, CAP accredited, and licensed by the Commonwealth of Massachusetts, reflecting adherence to rigorous regulatory and quality requirements. The acquisition of StrataDx further strengthens Fulgent’s presence in dermatopathology and complements its broader pathology strategy.
Strategic Rationale for the Transaction
The acquisition of Bako Diagnostics’ assets and StrataDx aligns closely with Fulgent Genetics’ long-term strategic objectives. The transaction is expected to deliver value across multiple dimensions, including technology enablement, test menu expansion, commercial synergies, and geographic reach.
Advancing Artificial Intelligence and Digital Pathology
Fulgent has made substantial investments in digital pathology and AI-driven solutions, including the development and deployment of Eziopath, its proprietary image management system (IMS). These technologies are designed to streamline pathology workflows, enhance image analysis, and improve diagnostic efficiency and consistency.
By integrating Bako’s and StrataDx’s pathology operations with Fulgent’s digital pathology and AI infrastructure, the company expects to improve laboratory capacity, reduce turnaround times, enhance operational efficiency, and maintain high standards of diagnostic quality. The combination of specialized pathology expertise with advanced AI tools positions Fulgent to drive innovation in pathology services at scale.
Expanding and Differentiating the Test Menu
The transaction significantly expands Fulgent’s pathology testing capabilities, adding Bako’s proprietary molecular diagnostics and specialized PCR assays to its existing test menu. These offerings enhance Fulgent’s ability to deliver rapid, cost-effective, and clinically meaningful diagnostic insights across a broader range of conditions.
The expanded menu supports Fulgent’s goal of offering comprehensive diagnostic solutions that address multiple points along the patient care continuum, from screening and diagnosis to treatment planning and monitoring.
Unlocking Commercial Synergies and National Scale
With the addition of Bako’s and StrataDx’s extensive testing capabilities and nationwide salesforce, Fulgent will move closer to its vision of becoming a one-stop diagnostic services provider for healthcare organizations across the United States.
Bako’s national sales team will nearly double the size of Fulgent’s pathology-focused commercial organization, significantly expanding the company’s reach. This enhanced sales infrastructure is expected to drive cross-selling opportunities, allowing Fulgent to introduce its existing diagnostic services to Bako’s and StrataDx’s established client base while also offering new pathology solutions to Fulgent’s current customers.
By engaging patients and providers at additional clinical touchpoints, Fulgent aims to deliver a more integrated and comprehensive suite of diagnostic products and services, ultimately supporting improved healthcare outcomes.
Expanding Geographic Footprint
The acquisition also expands Fulgent’s physical laboratory footprint, adding CLIA-, CAP-, and New York State–certified laboratories in Georgia and Massachusetts. This geographic diversification enhances operational flexibility, supports regional demand, and strengthens Fulgent’s ability to serve clients nationwide with speed and reliability.
Leadership Perspectives
Ming Hsieh, Chairman and Chief Executive Officer of Fulgent Genetics, emphasized the strategic importance of the transaction and its alignment with the company’s growth trajectory.
We are pleased to continue building upon our laboratory services platform with the addition of Bako and StrataDx,” said Hsieh. These acquisitions further expand and strengthen our diagnostic services portfolio and significantly enhance our capabilities in the pathology testing market. By leveraging our investments in AI and digital pathology, we believe we can improve efficiency and quality across these operations, driving continued momentum in our laboratory services business.”
Hsieh added that Fulgent has delivered organic, double-digit growth for several consecutive quarters. “Following the close of this transaction, we will be able to layer Bako’s specialized services into our testing menu, further reinforcing our laboratory services platform and supporting sustained growth.”
Ted Hull, Chief Executive Officer of Bako Diagnostics and StrataDx, expressed enthusiasm about joining Fulgent Genetics.
On behalf of Bako and StrataDx, we are excited to become part of the Fulgent Genetics family,” Hull said. “This combination brings together advanced technology, digital capabilities, and specialized diagnostic expertise. By joining forces, we will be better positioned to serve our clients, enhance the overall customer experience, and continue delivering high-quality diagnostic solutions.”
Sean Breen of Consonance Capital, which has partnered with Bako and StrataDx for more than a decade, highlighted the companies’ evolution and future prospects as part of Fulgent.
It has been a privilege to work alongside the management teams at Bako Diagnostics and StrataDx,” Breen said. “Both organizations have established themselves as market leaders by delivering differentiated diagnostic insights that improve clinical outcomes. As part of the Fulgent platform, Bako and Strata are well positioned to accelerate growth, expand their reach, and continue advancing innovation in diagnostics.”
Transaction Advisors
Piper Sandler & Co. served as exclusive financial advisor to Fulgent Genetics, Inc., while Mintz Levin, Cohn, Ferris, Glovsky and Popeo, P.C. acted as legal counsel to Fulgent in connection with the transaction.
EV Health Partners served as exclusive financial advisor to Consonance Capital Partners, Bako Diagnostics, and StrataDx, with Latham & Watkins LLP providing legal counsel to the sellers.
About Fulgent Genetics
Fulgent is a technology-based company with a well-established laboratory services business and a therapeutic development business. Fulgent’s laboratory services business includes technical laboratory and testing services and professional interpretation of laboratory results by licensed physicians. Fulgent’s therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. Fulgent aims to transform from a diagnostic business into a fully integrated precision medicine company.
About Bako Diagnostics
Bako Diagnostics is a premier national provider of specialty laboratory testing services which offers a comprehensive testing menu, including complete anatomic pathology services, proprietary molecular genetic testing, and peripheral neuropathy immuno-histochemical testing. Bako is primarily focused on providing clients with unmatched sector-specific expertise and physician support services.
About StrataDx
StrataDx is a national diagnostic laboratory located in Lexington, Massachusetts dedicated to providing best-in-class pathology services to save lives. Led by dermatopathology experts, StrataDx provides advanced diagnostics for a wide range of skin conditions including melanocytic and soft tissue lesions, dermatoses, and lymphomas. Board-certified oral pathologists represent decades of expertise across a wide range of clinical specialties. StrataDx is considered a leader in testing for the dermatology market.
