LabCorp to Acquire Dianon Systems

In a move to increase its presence in the cancer diagnostic testing market, Laboratory Corporation of America (LabCorp, Burlington, NC, USA) has agreed to acquire Dianon Systems, Inc. (Stratford, CT, USA).

Under the terms of the agreement, LabCorp will purchase all of the outstanding shares of Dianon for US$47.50 per share in cash and will acquire the company through the merger of a newly formed wholly-owned subsidiary of LabCorp with Dianon. LabCorp expects to realize an estimated $35 million in annual cost savings synergies by year-end 2005.

Dianon is a leading US provider of anatomic pathology and oncology testing services, with a focus on the outpatient market. Approximately 1,100 employees process more than 8,000 samples per day in one main testing facility and four regional labs. Dianon had 2001 revenues of approximately $126 million, and revenues of approximately $141 million for the nine-month period ended September 30, 2002.

"We are truly excited to have reached an agreement with this premier oncology testing laboratory,” said Thomas P. Mac Mahon, CEO of LabCorp. "More and better cancer diagnostics will continue to have a profound impact on patient care in the coming years. Combining LabCorp and Dianon will improve access to today's valuable cancer testing methods.”




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