Veracyte, Inc. (NASDAQ: VCYT), the South San Francisco, California-based diagnostics company, has bought Decipher Biosciences, Inc for $600 million consisting of $250 million in cash and up to $350 million in stock. Decipher Biosciences is a commercial-stage precision oncology company focused on urologic cancers. It has a comprehensive portfolio of tests which leverage whole transcriptome analysis and proprietary machine learning algorithms to improve patient decision-making across the clinical care continuum.

This acquisition solidifies Veracyte’s global position in the genomic cancer diagnostics market while accelerating revenue growth. Collectively, Decipher’s genomic tests have been used by more than 3,200 urologists and radiation oncologists, including at all 28 National Comprehensive Cancer Network centers in the United States. The transaction will also provide Veracyte with increased operational flexibility by including Decipher Bioscience’s state-of-the-art facilities in Southern California.

The deal for Decipher Biosciences carries on a trend from 2020, where diagnostic firms, particularly those in oncology, were in hot demand, according to search results in our Healthcare Deals Database. In late October, Exact Sciences Corp. (NYSE: EXAS) announced it purchased Cambridge, Massachusetts-based Thrive Earlier Detection Corp., a healthcare company focused on incorporating earlier cancer detection into routine medical care, for $1.7 billion

In June, Invitae Corporation (NYSE: NVTA), a genetic information company, bought ArcherDX, which offers genomic sequencing services and testing solutions to help develop and deliver personalized and precision diagnostics and monitoring in the field of oncology, for $883.3 million.