LYNDHURST, N.J., and HERNDON, Va., May 19, PRNewswire-FirstCall -- Quest Diagnostics Incorporated , the nation's leading provider of diagnostic testing, information and services, has agreed to acquire Focus Diagnostics, Inc., the premier infectious disease testing provider, in a cash transaction valued at approximately $185 million. Focus Diagnostics is privately held and based in Herndon, Virginia. The acquisition will add annual revenues of approximately $65 million.
Focus Diagnostics is a portfolio company of private equity firms DLJ Merchant Banking and The Sprout Group. Excluded from the transaction is Focus Bio-Inova, Focus Diagnostics' pharmaceutical testing operation. The transaction, which is expected to be completed during the third quarter of 2006, is subject to regulatory review and other customary closing conditions. Additional terms of the transaction were not disclosed.
"Focus Diagnostics has been recognized worldwide for its leadership in infectious and immunologic diseases and its expertise in developing new diagnostics," said Surya N. Mohapatra, Ph.D., Chairman and CEO of Quest Diagnostics. "Focus Diagnostics will further expand our capabilities and strengthen our position as the leading provider and developer of esoteric tests to hospitals and physicians."
The acquisition is not expected to have a material impact on Quest Diagnostics' 2006 earnings per share, excluding anticipated charges associated with the transaction.
Focus Diagnostics offers its reference testing services to large academic medical centers, hospitals and commercial laboratories. The company has also established a reputation for being first to introduce new assays to the market, including diagnostic tests for Lyme disease, West Nile Virus and SARS. In addition, Focus develops and markets diagnostic products, such as HerpeSelect(R) for Herpes Simplex Virus.
About Focus Diagnostics, Inc.
Founded in 1978 as Microbiology Reference Laboratory, Focus Diagnostics has served the healthcare community for nearly three decades as an innovative developer and provider of products and testing services for complex diagnostics, including infectious disease, autoimmune and newly introduced genetic testing. Focus Diagnostics' USFDA-registered and ISO 9001-certified diagnostics manufacturing facility and ISO 9001-certified reference laboratory are located in Cypress, California. Corporate headquarters are in Herndon, Virginia. More information is available at www.focusdx.com.
About Quest Diagnostics
Quest Diagnostics is the leading provider of diagnostic testing, information and services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic testing services through its national network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff. Quest Diagnostics is a pioneer in developing innovative new diagnostic tests and advanced healthcare information technology solutions that help improve patient care. Additional company information is available at: www.questdiagnostics.com.
The statements in this press release which are not historical facts or information may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results and outcomes to be materially different. Certain of these risks and uncertainties may include, but are not limited to, competitive environment, changes in government regulations, changing relationships with customers, payers, suppliers and strategic partners and other factors described in the Quest Diagnostics Incorporated 2005 Form 10-K and subsequent SEC filings.
CONTACT: Investors: Laure Park, +1-201-393-5030, or Media: Gary Samuels,+1-201-393-5700, both of Quest Diagnostics Incorporated