By combining the teams to streamline processes, Exact Sciences expects to see $25 million in savings within three years.

“We really believe we have a one-plus-one-equals-three here,” Popovitz said.

Shares of Genomic Health went up 6.4% to about $73 Monday. Exact Sciences shares dropped as much as 10% during the day, but bounced back to about the same price as it opened, with each Exact Sciences share trading at $117.

A skeptical note

Analyst Brian Weinstein, with investment firm William Blair & Co., said in a research note the fluctuation in stock price wasn’t a surprise as investors bought in for growth in Cologuard rather than the broader hold on cancer treatment that the acquisition leads toward.

“In addition to dilution from the stock component of the deal, this acquisition really does little, in our view, to help accelerate that core growth story we had become accustomed to hearing as the investment thesis. Rather, Exact Sciences will see its overall growth slow — to a still very strong 30%+ — and have to show it can handle running two very distinct franchises without a lot of obvious overlap or synergy to them,” Weinstein wrote.