Quest Diagnostics has inked an agreement to buy the cancer diagnostic company AmeriPath in a deal valued at $2 billion. The arrangement includes $770 million in debt that will be assumed by Quest when the deal closes sometime this spring after a Federal Trade Commission review.
Surya Mohapatra, chairman and chief executive officer of Quest, based in Lyndhurst, N.J., said the acquisition will add dermatopathology, anatomic-pathology and molecular-diagnostic specialists and technologies to Quests existing cancer diagnostic services, which include cervical, breast, skin and neurological cancers. AmeriPath, Palm Beach Gardens, Fla., earns an estimated $800 million in annual revenue from its diagnostic services.
The acquisition will accelerate Quest Diagnostics earning growth and provide compelling benefits for patients, physicians, hospitals and payers, Mohapatra said.
AmeriPath conducts an estimated 2.4 million biopsies annually and has about 400 pathologists and clinical scientists on staff. -- by Shawn Rhea