US-based genetic testing services provider NeoGenomics has agreed to acquire GE Healthcare's Life Sciences business unit Clarient and its wholly-owned subsidiary Clarient Diagnostic Services, for around $275m.
Under the deal, NeoGenomics will pay $80m in cash and $110m in preferred stock, and will provide 15 million shares of its common stock to Clarient.
Clarient Diagnostic Services offers comprehensive cancer diagnostic testing to hospitals, physicians and the pharmaceutical industry.
NeoGenomics chairman and CEO Douglas VanOort said: "Our vision is to become America’s premier cancer testing laboratory, and this acquisition is a major step forward in achieving that vision.
"We have always respected Clarient’s outstanding capabilities, and are very pleased to be able to combine them with our own outstanding service offering."
With around 415 employees, Clarient reported $127m revenue in 2014 and adjusted EBITDA of around $13m.
The acquired business will help NeoGenomics to expand its cancer diagnostic testing services to hospitals and physicians across the country.
Clarient’s pathology services and capabilities in the analysis of solid tumor cancers of the breast, colon and lung are said to compliment NeoGenomics’ molecular testing services and expertise in testing for hematologic cancers.
Clarient Diagnostic Services CEO Cindy Collins said: "We believe the business will benefit from the focus that will come from being part of NeoGenomics, while allowing GE Healthcare Life Sciences to focus on its core long-term growth areas in bioprocessing, cell therapy and disease imaging."
Subject to approval by the relevant anti-trust authorities and NeoGenomics’ shareholders, the deal is expected to be completed in the fourth quarter of this year.
In September, NeoGenomics signed a three-year national group purchasing agreement with Premier to provide cancer genetics testing services to around 3,600 hospitals in the US.
Image: NeoGenomics to acquire Clarient and its wholly-owned subsidiary Clarient Diagnostic Services. Photo: courtesy of stockimages/ FreeDigitalPhotos.net.