LabCorp in $925m takeover of Genzyme Genetics
15 Sept 2010
Laboratory Corporation of America Holdings (NYSE: LH) has agreed to acquire Genzyme Genetics, a business unit of Genzyme Corp. (NASDAQ: GENZ), in an all cash transaction valued at $925 million and a net cost valued at approximately $795 million.
Genzyme Genetics is a leading provider of complex reproductive and oncology testing services and the preferred provider for such services to maternal foetal medicine specialists and obstetrician / gynaecologists nationally. The business performs more than 1.5 million high-quality, high-clinical value tests annually with reported revenue in 2009 of approximately $371 million.
Chairman and CEO of LabCorp David P King said, “Genzyme Genetics is among the premier genetics and oncology laboratories in the United States. It has an excellent clinical reputation, a track record of growth and innovation and outstanding people.
“This acquisition will substantially expand our capabilities in reproductive, genetic, hematology-oncology and clinical trials central laboratory testing. The acquisition of Genzyme Genetics provides us with an unprecedented opportunity for revenue growth in our key strategic focus areas of esoteric testing and personalized medicine.”
The complex tests offered include technologies that span the continuum of care, ranging from maternal serum screening and prenatal diagnostics to carrier screening and postnatal testing services. Genzyme Genetics also has a broad network of board-certified geneticists and genetic counsellors, offering infertility and prenatal genetic counselling expertise to physicians and patients.