Quest Diagnostics acquires LifeLabs for $985 million

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

Under the terms of the transaction, LifeLabs will retain its brand, Toronto headquarters, and management team upon completion of the acquisition; Quest will acquire 100% of the equity in LifeLabs. Quest intends to finance the acquisition with cash on hand and debt and expects the transaction to generate approximately C$970 million (approximately $710 million) in annual revenue. Further details of the transaction were not disclosed.

The companies expect to complete 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 Quest’s Global Diagnostic Network, which connects 12 leading diagnostic testing labs around the world to expand access to testing and share expertise. In addition, Quest has provided LifeLabs with access to select advanced diagnostic tests.

The acquisition will strengthen the services provided by LifeLabs by integrating Quest’s resources, the company added, as well as adding online appointment scheduling and faster processing in the patient care center. Quest said it also aims to accelerate LifeLabs’ data security improvements while ensuring that Canadian patients’ health data remains in Canada.