Quest Diagnostics to acquire Solstas Lab Partners for $570M Quest Diagnostics announced that it has entered into a definitive agreement under which Quest will acquire Solstas Lab Partners Group and its subsidiaries for a total transaction value of approximately $570M. Quest Diagnostics expects the transaction to add approximately 5% in annualized revenues, about 1% of which will be from professional lab services, and be modestly accretive to adjusted earnings per share in 2014. The company expects to complete the acquisition in the first half of 2014, subject to the satisfaction of customary closing conditions.
Quest declines comment to Bloomberg on takeover speculation Quest Diagnostics (DGX) declined comment to Bloomberg regarding the takeover speculation that pushed the company's stock higher today. Shares of Quest are up $7.01 to $80.89 in midday trading. Shares spiked earlier in the trading day amid talk among traders that Quest hired an investment bank to explore a sale after being approached by a suitor. The talk is unconfirmed speculation that has not been reported by any news agencies. Quest peer LabCorp (LH) is up $1.74 to $122.10 at midday.
Quest Diagnostics jumps amid takeover speculation The move higher in Quest Diagnostics (DGX), which was earlier halted for volatility and remains up 15% to $85 per share in morning trading, has been attributed to takeover speculation. Peer Lab Corp. (LH) is also up 3.9% to $125 in morning trading.
Quest Diagnostics calls active on renewed takeover chatter Quest Diagnostics June 75 and 80 calls are active on total call volume of 2,100 contracts (100 puts) on renewed takeover chatter. June call option implied volatility is at 18, July is at 19; compared to its 26-week average of 19. Active call volume suggests traders taking positions for upside price movement.