Quest Diagnostics Inc (NYSE:DGX) recently revealed its plans to acquire medical laboratory business, Shied from Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS) to boost its presence in New York and New Jersey.
The two companies are reported to have set the ball in motion for the deal which will see Quest becoming the new owner of the Shield if the deal is successful. So far the financial terms of the deal have not yet been disclosed, though it is expected to come to completion within the fourth quarter of this year. The acquisition deal is also subject to approval from the relevant regulatory body. Shield provides clinical laboratory services within New York and New Jersey’s metropolitan area. This makes it the ideal acquisition for Quest because it will allow the company to solidify its presence within the two areas.
Shield is expected to offer Quest more access to innovations and diagnosis insights for patients and physicians that are located in New York and New Jersey once the acquisition deal goes through. Quest is pursuing the acquisition with the goal of expanding its patient service centers in the area. The acquisition will also be a positive move for care providers because they will receive direct access to a wider menu of services from Quest. Additionally, the services that are currently offered by Shield in Brooklyn, New York and Rockleigh, New Jersey will be moved to the Teterboro clinical laboratory in New Jersey.
Both Fresenius Medical Care and Quest will work together towards finding patients that are in the early stages of chronic kidney disease. Once identified, the two firms will work towards giving them treatments that will slow down the progression of the disease.
“Quest Diagnostics’ merger and acquisition activity is believed to be a key growth driver, functioning in full swing,” stated a recent report.
The company has lately been looking for opportunities that will speed up growth while also maintaining operational excellence. The acquisition of Shield marks the latest deal that the company has secured as part of its strategy.
Quest Diagnostics stock closed the latest trading session on Tuesday at 92.89.