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BIOTECH: LabCorp Buys Struggling Diagnostic Co.
San Diego's Sequenom Inc., which has seen a string of losses in recent years, is being acquired by LabCorp, a giant in the diagnostics and lab testing industry, in a deal worth $371 million.
Burlington, N.C.-based LabCorp will pay $2.40 for each Sequenom share outstanding, which is a hefty premium considering the company's closing price of 85 cents on July 26 (the day before the acquisition was announced). Sequenom's stock nearly tripled in premarket trade Wednesday, and was trading for $2.36 per share the day of the announcement.
The total equity value of the stock deal is $302 million, but LabCorp is also assuming Sequenom's net debt, bringing the value of the acquisition to...