Madison-based Quest Diagnostics announced that it has agreed to acquire two laboratory businesses in Lewisville, Texas.
The labs, Med Fusion and Clear Point, will allow Quest to establish a center of excellence, which will provide diagnostic services to help detect and manage cancer for oncologists and patients nationwide.
The two businesses together provide diagnostic services to physicians and provider networks. Baylor Scott & White Health, the largest not-for-profit health care system in Texas; The US Oncology Network, or The Network, supported by McKesson Specialty Health, a division of McKesson Corp.; Texas Oncology; and Pathologists Bio-Medical Laboratories are co-owners of one or both businesses.
Upon the completion of the transaction, Quest will become a preferred provider of advanced oncology diagnostics for The Network, including Texas Oncology.
"The US Oncology Network will benefit from our collaboration with Quest Diagnostics, a leader in innovative oncology and genomic testing," said Kirk Kaminsky, president, The US Oncology Network and Practice Management, McKesson Specialty Health. "We're excited about the opportunity for enhanced access to advanced diagnostic tools for the community-based oncology practices that we support."
The Network consists of more than 400 locations across the United States and over 1,400 independent physicians.
Quest will also become a preferred provider of inpatient and outpatient diagnostic services for 12 hospitals of Baylor Scott & White Health in North Texas. Quest and PBM will also have a preferred provider relationship for several services upon completion of the transaction.
"Precision medicine is changing the way we treat cancer and giving new hope to people living with the disease, but too often advanced diagnostics that facilitate the best possible care are out of reach of community oncologists and their patients," said Steve Rusckowski, chairman, CEO and president, Quest Diagnostics. "By partnering with McKesson Specialty Health and The Network, we will make Quest's state-of-the-art genomic analysis readily available to community oncologists everywhere. We also look forward to working with BSWH, a leading health system, to deliver broad access to high quality, high value services. This transaction will not only accelerate Quest's growth in cancer diagnostics, but also holds the promise of improving care for patients with cancer in Texas and the entire United States."
The transaction is expected to close in the third quarter of 2017. Financial terms were not disclosed.
Quest has other centers in San Juan Capistrano and Valencia, California; Chantilly, Virginia; and Marlborough, Massachusetts.
Ziegler, a specialty investment bank, acted as the financial advisor to Med Fusion on the transaction.
"By joining forces with Quest Diagnostics, Med Fusion will speed the development and adoption of its novel framework for precision medicine diagnostics developed in recent years by our team," said Jon L. Hart, chief executive officer, Med Fusion. "This relationship has tremendous potential to generate value and better outcomes and care for cancer patients."