Thursday, July 04, 2024
Quest Diagnostics has announced a definitive agreement with OMERS to acquire LifeLabs, a leading provider of community laboratory tests in Canada, for approximately CAN $1.35 billion (about USD $985 million), including net debt.
This acquisition is aimed at enhancing healthcare services for Canadians, leveraging Quest's extensive experience in supporting Canadian laboratories.
Post-acquisition, LifeLabs will continue operating under its own brand, maintaining its Canadian headquarters and management team.
Quest plans to bring its expertise and resources to improve LifeLabs' services, including advancements in online appointment scheduling and patient service center operations, while prioritizing data security enhancements to safeguard Canadian patients' health data within the country.
Quest's potential to expand LifeLabs' service offerings and increase patient access across Canada through innovative solutions.
Quest's recent advancements in specialized diagnostic testing, such as in Alzheimer's disease, women's health, oncology, and cardiometabolic health, underline its readiness to introduce new innovations to the Canadian market.
The alignment of Quest's strategic goals with LifeLabs' mission to enhance accessibility and service quality for millions of Canadians.
The transaction, expected to close by year-end subject to customary closing conditions and regulatory approvals in Canada, involves Quest acquiring 100% equity of LifeLabs.
Quest plans to finance the acquisition through cash reserves and debt. While the transaction may initially impact GAAP earnings per share due to amortization of intangibles, it is anticipated to enhance adjusted EPS within the first 12 months post-closing.
The acquisition builds on an established relationship between Quest and LifeLabs, including their participation in the Quest-led Global Diagnostic Network and a longstanding reference relationship.
This acquisition aims to further strengthen diagnostic capabilities and broaden access to advanced healthcare solutions for Canadians nationwide.
Source: questdiagnostics.com
