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NeoGenomics Buys Path Labs for $6M

NEW YORK (GenomeWeb) – Cancer genetics testing firm NeoGenomics said on Tuesday it has acquired Path Labs for $6 million.

Doing business as Path Logic, Path Labs is headquartered in Santa Ana, Calif., and provides specialized anatomic pathology services to hospitals and physicians in Northern California. Its areas of expertise include renal pathology, dermapathology, women's health, and gastrointestinal and genitourinary pathology.

In 2013, it reported $10 million in revenues and employed 65 people. As part of the deal, NeoGenomics acquires Path Labs' main laboratory in West Sacramento and its satellite facilities in Santa Ana and Fresno.

Path Labs will operate as a wholly owned subsidiary of NeoGenomics and provide specialized anatomic pathology services for NeoGenomics' clinical trials and pathology clients, the Fort Myers, Fla.-based firm said.

NeoGenomics Chairman and CEO Douglas VanOort said in a statement that he anticipates realizing $3 million to $4 million of synergies from the deal "in a relatively short order" and that the transaction will be accretive within six months.

"With this expanded capability, both our clinical trial clients and our hospital and pathology-based clients will have access to an expanded product line and consulting expertise," he said.