08:57 AM EDT, 07/03/2024 (MT Newswires) -- Quest Diagnostics ( DGX ) said Wednesday it has reached a definitive agreement with OMERS to acquire LifeLabs, a provider of community laboratory tests, for 1.35 billion Canadian dollars ($985 million), including net debt.

Under the deal, Quest will acquire 100% of the equity of LifeLabs. The company expects to fund the acquisition through cash on hand and debt.

LifeLabs will retain its brand, Canadian headquarters and management after deal completion, which is expected to occur by the end of the year.

The transaction is expected to generate about CA$970 million in annual revenue and to be accretive to adjusted EPS in the first 12 months after closing.