Quest Diagnostics acquires LifeLabs for $985M

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Quest Diagnostics has reached a definitive agreement to acquire LifeLabs, a community laboratory test provider, from Canadian pension fund firm OMERS for approximately 1.35 billion Canadian dollars  (approximately $985 million), including net debt.

Under the terms of the transaction, LifeLabs will retain its brand, Toronto-area headquarters, and management team after the acquisition has closed; Quest will acquire 100% of the equity of LifeLabs. Quest intends to fund the acquisition through cash on hand and debt and expects the transaction to generate approximately 970 million Canadian dollars (approximately $710 million) in annual revenues. Further details of the transaction were not disclosed.

The companies anticipate completing the transaction by the end of the year, subject to customary closing conditions and regulatory approvals.

In a statement, Quest noted that LifeLabs has participated for the past five years in the Quest-led Global Diagnostic Network, which connects 12 of the leading diagnostic testing labs globally to broaden testing access and share expertise. Additionally, Quest has provided access to select advanced diagnostic tests to LifeLabs.

The acquisition will strengthen the services provided by LifeLabs through the integration of Quest's resources, the firm added, as well as adding online appointment scheduling and faster patient service center processing. Quest said that it also aimed to accelerate LifeLabs' data security enhancements while ensuring that Canadian patients' health data remain in Canada.

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