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Seeking to expand its presence in cancer diagnostics, Laboratory Corp. of America Holdings said Nov. 11, it had agreed to acquire medical testing provider Dianon Systems Inc. for $598 million in cash.
LabCorp will pay Dianon shareholders $47.50 a share, a 17% premium over Friday's closing price of $40.59.
The deal, if completed, will expand Burlington, N.C.-based LabCorp's product and geographic reach, as well as add 5 cents to diluted per-share earnings in 2003. By the end of 2005, LabCorp expects annual cost savings of $35 million.
"LabCorp has identified oncology as the leading growth area" in diagnostics, LabCorp CEO Thomas Mac Mahon said during a conference call trumpeting the deal. "LabCorp fully expects to be...