Quest Diagnostics to buy Solstas Lab for $570 mn

Quest Diagnostics Inc, a US-based provider of laboratory test services, yesterday agreed to acquire Solstas Lab Partners Group, for about $570 million.

Solstas, owned by private equity firm Welsh, Carson, Anderson and Stowe, is a full-service commercial laboratory company based in Greensboro, North Carolina.

It provides clinical, anatomic pathology, and esoteric testing services. The company offers testing services, including pathology consultation services for physicians and healthcare providers.

The company operates in nine states throughout the Southeastern US, including North and South Carolina, Virginia, Tennessee, Georgia and Alabama.

Quest Diagnostics expects the deal to add approximately 5 per cent in annualised revenues, about 1 per cent of which will be from professional lab services.

The company expects to complete the acquisition in the first half of 2014, subject to customary closing conditions.

"Solstas has excellent client relationships and local presence in the Southeast, and we expect to build on the value of these assets with our broad and innovative test menu, scientific expertise and health IT solutions," said Steve Rusckowski, president and CEO, Quest Diagnostics.

"It will also enable us to offer our professional lab services to Solstas' hospital clients that will benefit from Quest's experience driving quality, innovation and cost savings for labs," he added.

Quest Diagnostics offers diagnostic information and testing services that help improve patient care.

It also provides professional laboratory services to help hospitals and health systems manage their laboratories to promote quality and cost efficiencies.