Quest Diagnostics expands into Canada with nearly $1 billion LifeLabs deal

A health worker holds a blood sample while testing municipal workers from the Miraflores district of Lima for the coronavirus disease (COVID-19), in Lima

(Reuters) -Quest Diagnostics said on Wednesday it would acquire Canada-based LifeLabs from pension plan owner OMERS for about C$1.35 billion, or about $985 million, including net debt.

LifeLabs, which provides community laboratory tests, would retain its brand, Canadian headquarters and management after the acquisition is closed.

The U.S. laboratory operator will acquire 100% of the equity of LifeLabs and expects to fund the acquisition through cash on hand and debt. Quest expects the deal to generate roughly $710 million in annual revenues.

The transaction is expected to be completed by the end of the year.

(Reporting by Sneha S K in Bengaluru; Editing by Shilpi Majumdar)