Diagnostics technologies and lab services company LabCorp (NYSE:LH) is acquiring Clearstone Central Laboratories to boost the company’s capabilities and global reach providing services for clinical trials.
Burlington, North Carolina-based LabCorp announced the definitive agreement on Wednesday, though the company did not disclose any financial terms of its proposed acquisition of privately held Clearstone. The companies expect to close the deal later this quarter.
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Canada-based Clearstone offers LabCorp a global network of central laboratories as well as its proprietary clinical trials management system. The deal broadens LabCorp’s global footprint as Clearstone has extensive operations in the Asia Pacific region in addition to operations in Europe and North America. The companies are no strangers to each other. Clearstone had already been collaborating with Esoterix, LabCorp’s clinical trials division.
LabCorp CEO David King said in a statement that Clearstone would also help with the company’s companion diagnostics and personalized medicine strategy. Indeed, LabCorp has been on a buying spree of companies that can support this strategy of developing diagnostics that can be paired with drugs. Clearstone marks the fifth LabCorp acquisition in six months. The most recent deal was the $85 million offer in April to acquire DNA testing services company Orchid Cellmark (NASDAQ:ORCH). Last December, LabCorp completed its $925 million acquisition of Genzyme Genetics, a unit of Genzyme.
The Orchid deal, which was done in part to boost LabCorp’s United Kingdom presence, could close today. Two weeks ago, LabCorp extended its tender offer until June 1 after the Federal Trade Commission asked for more information.
LabCorp maintains a network of more than 1,500 laboratories spanning the country. The company reported more than $5 billion in 2010 revenue generated from providing tests and other laboratory services through that lab network.
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