LifeLabs Medical Laboratory Services is a Canadian medical diagnostic service provider. It announced last Tuesday that it would acquire its rival, CML Healthcare Inc. The deal was valued around C$965 million.
The acquisition deal will enable the companies to diversify its services to its patients across the province of Ontario. LifeLabs Medical Laboratory Services and CML's network of laboratory testing services would reach a broader market upon the completion of the deal.
Ontario Municipal Employees Retirement System (OMERS) is the indirect owner of LifeLabs. The company paid C$10.75 per share piece. A 49% premium is included in the deal to be paid to CML's closing price on Monday.
According to a statement released by the company, the transaction is valued up to C$1.22 billion. This included the assumption of C$255 million worth of debts.
The directors of the board for CML, LifeLabs and OMERS approved the proposed deal. In a special shareholders' meeting on September 3, CML investors will vote on the deal. The transaction is expected to close late September.
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