What: Shares of Neogenomics (NASDAQ:NEO), a cancer-focused provider of genetic and molecular testing services for hospitals, pathologists, and oncologists, were up more than 20% in trading today after the company announced that it is acquiring Clarient, a cancer diagnostic testing company that is a unit of General Electric's (NYSE:GE) Healthcare business.

So what: Neogenomics has agreed to pay $80 million in cash, $110 million in preferred stock, and issue 15 million shares of Neogenomics common stock to make the deal happen. Based on yesterday's closing price, the entirety of this deal is potentially valued around $275 million, which is quite a substantial number when compared to Neogenomics' current $411 million market cap. 

This deal should be transformative for investors, as Clarient produced revenue of $127 million and Adjusted EBITDA of approximately $13 million in 2014. By comparison, Neogenomics produced only $87 million in revenue and $2.2 million in EBITDA last year.

Now what: If the deal goes through, it could substantially change Neogenomics' financial positionl. For 2016 the combined companies are expecting revenue to grow to between $240 million to $250 million, with adjusted EBITDA more than tripling to between $33 million and $38 million. The company also expects to gain modest synergies over time that could eventually reach as high as $20 million to $30 million.

It's certainly worth noting that GE clearly sees potential for Neogenomics -- if it chooses to convert all of its preferred stock into common stock it could become a 32% owner of the company. If GE didn't see a bright future for the smaller company, it probably would have simply demanded that the deal be done in cash. While its position in Neogenomics would still be a rounding error compared to GE's current $290 billion market cap, the endorsement lends credibility to Neogenomics' future, which is likely another reason investors are excited.

This deal clearly looks to be a needle-mover, and it could help transform Neogenomics from a small player into a big one in a hurry, so I certainly can understand why the market is bidding up shares of Neogenomics today.