Quest Diagnostics, a prominent provider of diagnostic information services, has entered into a definitive agreement with OMERS to acquire LifeLabs, a leading provider of community laboratory tests serving millions of Canadians. The transaction, valued at approximately CAN $1.35 billion (approximately USD $985 million) including net debt, marks a significant move aimed at enhancing healthcare accessibility and innovation across Canada.
Jim Davis, Chairman, CEO, and President of Quest Diagnostics, expressed confidence in the acquisition’s potential to accelerate growth and improve healthcare outcomes. “Quest has been dedicated to supporting laboratories, hospitals, and academic centers in Canada for over two decades, including during the Covid-19 pandemic,” Davis stated. “We are committed to collaborating with the LifeLabs team to ensure continuity of service and to introduce innovations that address the needs of Canada’s expanding and aging population.”
Following the acquisition, LifeLabs will maintain its brand, Canadian headquarters, and existing management structure. Quest plans to leverage its expertise and resources to bolster LifeLabs’ services, benefitting from enhancements such as streamlined online appointment scheduling and improved patient service center operations. Moreover, Quest aims to bolster data security measures to safeguard Canadian patients’ health information within Canada.
Michael Hill, Executive Vice President and Global Head of Infrastructure at OMERS, emphasized Quest’s capabilities in expanding LifeLabs’ service offerings and improving patient access across Canada. “Quest’s commitment to innovation and patient care aligns well with our strategic goals for LifeLabs,” Hill remarked. “We are confident that Quest will bring new opportunities and advancements to this market.”
Quest Diagnostics has recently introduced advanced diagnostic tests in areas such as Alzheimer’s disease, women’s health, oncology, and cardiometabolic health, underscoring its ongoing commitment to innovation in healthcare.
Charles Brown, President and CEO of LifeLabs, highlighted the compatibility between Quest and LifeLabs in culture, values, and strategic vision. “Together, we will strengthen LifeLabs’ position as a leader in Canadian diagnostics, ensuring more Canadians have access to advanced diagnostics closer to home,” Brown affirmed. He also expressed gratitude to OMERS for their longstanding support and collaboration over the past 17 years.
The transaction, which involves Quest acquiring 100% equity of LifeLabs, is expected to close by the end of the year, pending customary closing conditions and regulatory approvals in Canada. Financial advisors Evercore and CIBC Capital Markets assisted OMERS in the transaction, while legal advisors McCarthy Tétrault LLP and Blake, Cassels & Graydon LLP provided legal counsel to Quest Diagnostics and OMERS, respectively.
LifeLabs, recognized for its diagnostic information and digital health connectivity systems, plays a pivotal role in diagnosing, treating, monitoring, and preventing disease across Canada. OMERS, a defined benefit pension plan, serves a diverse range of employers and members across various sectors.
Quest Diagnostics continues to collaborate within the healthcare ecosystem to advance diagnostic insights that empower individuals, healthcare providers, and organizations to enhance health outcomes globally.