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The Deal: Dianon Systems Inc. has agreed to purchase UroCor Inc. for $180 million in stock. The acquisition is a move by Dianon to expand its cancer diagnostics business. Discussion: UroCor aids urologists in the prognosis and monitoring of diseases such as prostate cancer, bladder cancer and kidney stones. Diagnostic services, which account for more than 90 percent of sales, include specimen analysis and DNA testing. Physicians can, obtain these diagnostic findings online via UroCor's partnership with WebMD. UroCor's ProstaSeed prostate cancer treatment is used in brachytherapy, a form of radiation therapy in which small radiation-producing "seeds" are implanted around a tumor. Dianon Systems specializes in testing blood, tissue, cell and urine samples. Through four anatomical pathology and clinical chemistry laboratories, the company can test for cancer and many gynecological and genetic diseases. The company purchases or licenses new diagnostic technologies from test developers, then markets its services to about 50,000 physicians in oncology, urology, dermatology, gynecology and gastroenterology. Almost one third of the firm's revenue comes from Medicare and Medicaid reimbursements.