NeoGenomics has reached an agreement to acquire Clarient and its wholly owned subsidiary Clarient Diagnostic Services. Clarient, a unit of GE Healthcare’s Life Sciences business, is based in Houston and in Aliso Viejo, Calif., and has approximately 415 employees. Clarient had 2014 revenue of $127 million.
The acquisition will allow NeoGenomics to broaden its offering of cancer diagnostic tests to hospitals and physicians across the country and to accelerate its growth in the worldwide market for pharmaceutical clinical trials and research.
Clarient’s pathology services and capabilities for analyzing solid tumor cancers of the breast, colon, and lung are highly complementary to NeoGenomics’ molecular testing services and extensive expertise in testing for hematologic cancers. Hospital, physician, and pharmaceutical industry clients will benefit from the combined company’s ability to offer a wider range of tests, closer geographical access to services, and enhanced service capabilities. The acquisition will allow the company to further leverage its existing laboratory facilities and infrastructure to drive productivity and lower operating costs.
On a fully diluted basis, assuming full conversion of the preferred stock, GE Healthcare will beneficially own approximately 32 percent of NeoGenomics. As part of the transaction, the NeoGenomics board of directors will be expanded with the appointment of a new director from GE Healthcare. In addition, NeoGenomics and GE Healthcare have agreed to collaborate on a new bioinformatics initiative that combines their shared interest in precision oncology.