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Quest Diagnostics Acquiring Canadian Lab Firm LifeLabs for C$1.35B

NEW YORK – Quest Diagnostics said Wednesday that it is acquiring Canadian laboratory firm LifeLabs for roughly C$1.35 billion (US$985 million).

According to Quest, the transaction will generate roughly C$970 million in annual revenues and will be accretive to adjusted earnings per share in the first year after closing. It plans to fund the acquisition through cash on hand and debt.

Currently owned by the Ontario pension fund OMERS, LifeLabs has more than 6,500 employees and provides laboratory services to millions of Canadian customers. The company operates Canada's first commercial genetics lab and largest online patient portal.

LifeLabs will keep its brand, Canadian headquarters, and management following the acquisition, which is expected to close by the end of the year.

"Quest has supported laboratories, hospitals, and academic centers in Canada with specialized testing services for over two decades, including during the COVID-19 pandemic," Jim Davis, Quest's chairman, CEO, and president, said in a statement. "This transaction is predicated on our strong belief that we can help LifeLabs accelerate growth and improve healthcare. We are committed to working with the LifeLabs team to ensure service continuity and enhance access and innovation to meet the needs of Canada's growing and aging population."

"Quest is the right partner to build on the strengths of LifeLabs and align with our strategic path, which focuses on enhancing the accessibility and quality of services that we provide to millions of Canadians," Charles Brown, president and CEO of LifeLabs, said in a statement. "We know and respect Quest, as we share similar cultures and values and a productive test-reference relationship. Together, we'll grow LifeLabs and provide more Canadians with access to the advanced diagnostics they rely on, closer to home."

The two companies have an existing relationship through LifeLabs' participation in the Quest-led Global Diagnostic Network, which connects 12 global diagnostic labs to broaden testing access and share expertise. LifeLabs and Quest also have a reference relationship through which Quest provides access to select advanced diagnostic tests.