Cancer-focused genetic testing services provider NeoGenomics has signed a definitive agreement to acquire US-based clinical oncology laboratory Genoptix in a $125m deal.

The acquisition of haematology and solid tumour testing specialist Genoptix enables NeoGenomics to advance its expansion into community oncology practices.

NeoGenomics chairman and CEO Douglas VanOort said: “The acquisition of Genoptix enhances NeoGenomics’ leadership in the oncology test market, significantly expanding our coverage of oncology practices, increasing our customer reach and leaving us better positioned for growth.

“The combined company will be uniquely positioned in the oncology test market.”

“With what we believe to be the most comprehensive oncology test menu in the country and reach across all distribution channels, the combined company will be uniquely positioned in the oncology test market.”

Following the acquisition, NeoGenomics will be able to draw on the best attributes from each company and improve the quality of customer service.

Genoptix customers will benefit from comprehensive test offering, a broad portfolio of managed care, GPO contracts and the national laboratory infrastructure of NeoGenomics.

NeoGenomics’ customers will benefit from Genoptix customised consults and reports.

The acquisition is also expected to contribute $85m of revenue and break-even EBITDA in the first year, $25m of cost synergies over time, and 25% EBITDA margin by the end of the third year.

Last March, private investment firms Ampersand Capital Partners and 1315 Capital completed the acquisition of Genoptix from Novartis.

Specialising in cancer genetics testing and information services, NeoGenomics operates laboratories in California, Florida, Texas, Tennessee and Switzerland.