NeoGenomics, Inc. (NASDAQ: NEO) rose after the company announced plans to acquire Genoptix for $125 million in cash and one million shares of NeoGenomics common stock.
The Fort Myers, Florida-based NeoGenomics, a leading provider of cancer-focused genetic testing services, announced the pact Tuesday.
Genoptix is a leading clinical oncology laboratory, specializing in hematology and solid tumor testing, with an outstanding reputation and relationship with community oncologists across the United States.
Genoptix’s strong capabilities complement NeoGenomics’ leadership position with hospitals and pathologists.
"The acquisition of Genoptix enhances NeoGenomics’ leadership in the oncology test market, significantly expanding our coverage of oncology practices, increasing our customer reach and leaving us better positioned for growth." said Douglas M. VanOort, NeoGenomics’ Chairman and CEO.
"With what we believe to be the most comprehensive oncology test menu in the country and reach across all distribution channels, the combined company will be uniquely positioned in the oncology test market."
Genoptix has well-established relationships with community oncology practices, a sales force and pathologists that are experienced in serving oncologists, and customized reports that are considered to be the gold standard among community oncologists.
The acquisition is expected to contribute $85 million of revenue and breakeven EBITDA in year one, $25 million of cost synergies over time, and 25% EBITDA margin by the end of year three.
NeoGenomics specializes in cancer genetics testing and information services. The company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer.
Shares zoomed $1.27, or 9%, to $15.37
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