July 3 (Reuters) - Quest Diagnostics ( DGX ) said on

Wednesday it would acquire Canada-based LifeLabs from pension

plan owner OMERS for about C$1.35 billion, or about $985

million, including net debt.

LifeLabs, which provides community laboratory tests, would

retain its brand, Canadian headquarters and management after the

acquisition is closed.

The U.S. laboratory operator will acquire 100% of the equity

of LifeLabs and expects to fund the acquisition through cash on

hand and debt. Quest expects the deal to generate roughly $710

million in annual revenues.

The transaction is expected to be completed by the end of

the year.