NeoGenomics to acquire GE Cancer Testing Unit Clarient

NeoGenomics Inc. agreed to acquire Clarient Inc., a subsidiary of the health-care unit of General Electric Co. , in a deal potentially valued at $275.2 million that aims to broaden the genetic-testing company’s offerings of cancer diagnostic tests.
Under the deal, NeoGenomics will acquire the cancer diagnostic testing firm for $80 million in cash, $110 million in preferred stock, and 15 million shares of NeoGenomics common stock—valued at roughly at $85.2 million based on Tuesday’s closing price.
NeoGenomics Chairman and Chief Executive Douglas VanOort said NeoGenomics and GE Healthcare have agreed to collaborate on a new bioinformatics initiative that will explore the potential for new products that combine genomic and imaging data.
Clarient had revenue of $127 million last year and has roughly 415 employees.
NeoGenomics said that Clarient’s capabilities in testing for solid tumor cancers of the breast, colon and lung are highly complementary to its capabilities in testing hematologic cancers.
The company expects cost savings of $4 million to $6 million next year, with annual cost savings rising to $20 million to $30 million by the end of the third year following the deal.