Cancer-focused genetic testing services provider NeoGenomics has agreed to acquire Clarient, the life sciences business unit of GE Healthcare, for approximately $275m.
Under the deal, NeoGenomics will also buy Clarient's wholly owned subsidiary Clarient Diagnostic Services that offers comprehensive cancer diagnostic testing to hospitals, physicians and the pharmaceutical industry.
NeoGenomics chairman Douglas VanOort said: "Our vision is to become America's premiere cancer testing laboratory, and this acquisition is a major step forward in achieving that vision.
"We have always respected Clarient's outstanding capabilities, and are very pleased to be able to combine them with our own outstanding service offering."
With this development, NeoGenomics is expected to strengthen its offering of innovative cancer diagnostic tests, and also to increase its pre-science in pharmaceutical clinical trials and research market.
Clarient's pathology services and capabilities in the analysis of solid tumour cancers of the breast, colon and lung are expected to support NeoGenomics' molecular testing services and expertise in testing for hematologic cancers.
Clarient Diagnostic Services CEO Cindy Collins said: "We believe the business will benefit from the focus that will come from being part of NeoGenomics, while allowing GE Healthcare Life Sciences to focus on its core long-term growth areas in bioprocessing, cell therapy and disease imaging."
Clarient reported revenue of $127m and adjusted EBITDA of $13m last year. The company currently employs 415 people.
In September, NeoGenomics entered a national group purchasing agreement with Premier in order to offer cancer genetics testing services to 3,600 hospitals.
With the three year agreement, NeoGenomics will support premiere member hospitals, cancer centres, pathology groups, and oncology/physician providers nationwide.