LabCorp to expand presence in Northern California

LabCorp (Nyse: LH) of Burlington has agreed to pay $4.5 million in cash to purchase certain assets in Northern California from Quest Diagnostics Inc. (Nyse: DGX) following that company's acquisition of Unilab Corp.of Tarzana, Calif.

LabCorp's acquisition will include four contracts with independent physician associations and leases for 46 patient service centers.

According to Quest, about $27 million in annual revenues is generated by capitated fees under the contracts and associated fee-for-service testing, and from specimens received directly from the IPA physicians.

The transaction will require Federal Trade Commission approval once the Quest/Unilab transaction is completed.

COPYRIGHT 2003 North Carolina Biotechnology Center
COPYRIGHT 2008 Gale, Cengage Learning