LifeLabs Medical Laboratory to buy CML HealthCare for $1.16 bn

LifeLabs Medical Laboratory Services, a leading Canadian provider of community laboratory services, is buying medical diagnostic services provider CML HealthCare Inc, in a C$1.22 billion ($1.16 billion) deal, including debt.

LifeLabs, owned by Ontario Municipal Employees Retirement System (OMERS), will pay C$10.75 per share, a 49-per cent premium to CML's Monday closing price.

CML caters to over 6 million patients each year at its around 200 lab and diagnostic imaging sites in Ontario and British Columbia, processing over 40 million tests annually.

Its services include testing in biochemistry, haematology, immunology, microbiology, histology, ctology, endocrinology, urinalysis and molecular diagnostics.

The Ontario-based company also offers a mix of digital and analog imaging services in x-ray, ultrasound, mammography, bone mineral density, MRI, CT and nuclear medicine.

LifeLabs is Canada's largest provider of laboratory services conducting more than 50 million laboratory tests, serving over 11 million patients and 26,000 health care providers.

"I'm very pleased to announce that our two laboratory diagnostic companies are coming together in Ontario to serve patients and their health providers," said Sue Paish, president and CEO of LifeLabs. "Coming together, we can be even stronger partners with government and health care providers in the planning and delivery of high quality and accessible diagnostic services for Canadians."

"Since 1971, CML has been a trusted partner of medical professionals, providing timely and accurate medical diagnostic testing services to Canadians," said Patrice Merrin, chairman of CML. "LifeLabs, too, has an outstanding reputation of delivering quality care and I am confident that the combined organization will maintain and grow our trusted partner relationships. This is a natural fit for two strong companies."