Diagnostic information services provider Quest Diagnostics (NYSE:DGX) announced yesterday that it had completed the acquisition of the clinical outreach services of Dignity Health, a California-based hospital.
Terms of the acquisition were not disclosed, but Quest said it would perform the testing for the non-hospital labs at its clinical laboratories in California and Nevada. Dignity's hospital-based labs were not included in the transaction.
So far this year, Quest has made three lab business acquisitions including Diginity's, having previously acquired the toxicology and clinical laboratory business of Humana subsidiary Concentra, and the clinical and anatomic-pathology outreach laboratory businesses of UMass Memorial Medical Center.
Quest expects the Dignity deal to be neutral to adjusted earnings this year while being modestly accretive to earnings per share in 2014. The company also said it expects it to contribute about half a percentage point to consolidated revenues annually. Quest Diagnostics generated approximately $7.4 billion in revenues in 2012.