The Zhitong Finance App learned that on Wednesday local time, Quest Healthcare (DGX.US), a leading diagnostic information service provider, announced that it will acquire Canadian community laboratory testing service provider LifeLabs from OMERS at a price of about 1.35 billion Canadian dollars (about 0.985 billion US dollars, including net debt). This move marks a further deepening of cooperation between the two companies in the field of medical diagnosis.

Once the acquisition is complete, LifeLabs will retain its brand, Canadian headquarters, and existing management. Quest Healthcare will infuse LifeLabs with new expertise and innovative resources to improve the quality of service provided by its 6,500 employees. This includes optimizing the online appointment process and making patient service centers more responsive. At the same time, Quest Healthcare also plans to strengthen LifeLabs' data security measures and ensure the safe storage of Canadian patients' health data domestically.

Michael Hill, executive vice president and head of global infrastructure at OMERS, said, “OMERS has supported the development of LifeLabs for the past 17 years. The 2007 acquisition and subsequent investments helped LifeLabs grow into a leader in Canadian healthcare. We believe that with its unique strengths, Quest Healthcare will be able to expand the scope of LifeLabs services, bring innovation to the market, and expand service coverage for Canadian patients.”

The two companies have established a strong partnership. Over the past five years, LifeLabs has participated in a global diagnostic network led by Quest Diagnostics, which connects 12 of the world's top diagnostic laboratories to expand testing channels and share expertise. Additionally, LifeLabs has established a reference relationship with Quest Diagnostics, through which Quest provides LifeLabs access to a range of advanced diagnostic tests.

Quest Healthcare plans to acquire 100% of LifeLabs's shares and is expected to complete the acquisition through cash and debt financing. The transaction is expected to bring the company approximately 0.97 billion Canadian dollars (approximately 0.71 billion US dollars) in annual revenue. Although GAAP earnings per share (EPS) may decline slightly early in the transaction, mainly due to amortization of intangible assets and other items, adjusted earnings per share are expected to increase within 12 months after the transaction is completed. The deal fully complies with Quest Clinics' strategic standards for growth, profitability, and return.

The parties expect the deal to be completed before the end of the year, subject to some routine transaction conditions and approvals, including approval from Canadian regulators. Currently, other terms of the deal have not been disclosed to the outside world.