RapidEye Quest Diagnostics ( NYSE: DGX ) on Wednesday announced an agreement to acquire lab test provider LifeLabs for ~$985M (C$1.35B), including net debt from Canadian pension fund OMERS. Under the agreement, Secaucus, New Jersey-based Quest ( DGX ) will buy 100% of LifeLabs' equity using its cash on hand and debt.
The deal builds on an ongoing partnership between Quest ( DGX ) and LifeLabs in the diagnostic space. Once closed, the transaction is expected to add about $710M (C$970M) to Quest's ( DGX ) annual revenue despite slightly diluting its GAAP earnings per share. However, LifeLabs, which runs Canada's first commercial genetics lab and the country's largest online patient portal, is expected to improve DGX's.
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