Quest Diagnostics will take over AmeriPath in an all-cash transaction valued at approximately $2 billion.
"This acquisition will establish our leading position in cancer diagnostics with a focus on dermatopathology, anatomic pathology, and molecular diagnostics," comments Surya N. Mohapatra, Ph.D., chairman and CEO, Quest. "AmeriPath is respected for its leadership in dermatopathology and anatomic pathology, two of the fastest growing segments in diagnostic testing. Additionally, its specialty laboratories will further strengthen our hospital and esoteric testing business.”
The transaction is expected to close during the second quarter of 2007, according to Quest. “The acquisition will accelerate Quest Diagnostics' revenue and earnings growth and provide compelling benefits for patients, physicians, hospitals and payers through enhanced customer service and expanded test offerings," notes Dr. Mohapatra.
Quest reports that AmeriPath has annualized revenues in excess of $800 million. It predicts that the acquisition will have minimal impact to the company’s 2007 EPS and will be modestly accretive to 2008 EPS.