Diagnostic information specialist Quest Diagnostics (NYSE:DGX) will acquire the lab-related clinical outreach service operations of California-based hospital system Dignity Health, serving doctors and patients in parts of California and Nevada.
Outreach services are provided by hospitals to physicians and patients outside of a hospital setting.
Quest Diagnostics expects the transaction to be completed in June and anticipates it will be neutral to adjusted earnings in 2013 and modestly accretive to earnings per share in 2014. The company expects it to contribute about half a percentage point to consolidated revenues annually.
Quest Diagnostics president and CEO Steve Rusckowski said, "This acquisition is consistent with our five-point strategy, which includes delivering disciplined capital deployment and driving 1% to 2% in growth per year through strategically aligned fold-in acquisitions."
If completed, this will mark the second acquisition by Quest of an outreach business in 2013. In January, Quest acquired the clinical and anatomic-pathology outreach laboratory businesses of Massachusetts-based UMass Memorial Medical Center.
Additional terms of the Dignity Health acquisition were not disclosed.
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