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NeoGenomics (NASDAQ:NEO), a leading provider of cancer-focused genetic testing services, announced today that it has completed the acquisition of the parent company of Genoptix for $125 million in cash, as adjusted by working capital and other adjustments, and 1 million shares of NeoGenomics common stock. Genoptix is a leading clinical oncology laboratory, specializing in hematology and …
NeoGenomics (NASDAQ:NEO), a leading provider of cancer-focused genetic testing services, announced today that it has completed the acquisition of the parent company of Genoptix for $125 million in cash, as adjusted by working capital and other adjustments, and 1 million shares of NeoGenomics common stock. Genoptix is a leading clinical oncology laboratory, specializing in hematology and solid tumor testing.
As quoted in the press release:
The acquisition expands NeoGenomics’ reach into oncology practices, and significantly accelerates the company’s progress towards key scale and growth objectives. Genoptix is expected to contribute $85 million of revenue and break-even EBITDA in year one, $25 million of cost synergies over time, and 25% EBITDA margin by the end of year three.
“We are pleased to welcome each and every Genoptix employee to the NeoGenomics family and look forward to incorporating Genoptix’s outstanding Oncology diagnostic services into our own,” said Douglas M. VanOort, NeoGenomics’ Chairman and CEO. “We also extend a warm welcome to all of the oncologists, pathologists, physician offices, and hospitals who have worked with Genoptix over the years. Our goal is to combine the best practices of both companies to create a service offering that is unparalleled in the oncology testing market.”