Last month, it was announced that Solstas Lab Partners of Greensboro, North Carolina, had agreed to be sold to Quest Diagnostics Incorporated. The sales price is $570 million and financial analysts on Wall Street estimate that the annual revenue at Solstas Lab Partners is about $350 million. This would indicate that Quest Diagnostics paid a multiple of about 1.6 times annual revenue for Solstas.
ADD TO: Quest’s Lab Acquisitions
It was about one year ago when Quest Diagnostics finalized its purchase of the laboratory out-reach business of the UMass Medical Center in Worcester, Massachusetts. Four weeks ago, the Worcester Telegram & Gazette reported that UMass administration disclosed that it received a purchase price of $108 million from Quest Diagnostics for the outreach lab business. It is believed that the UMass lab outreach business was generating about $90 million in yearly revenue. If accurate, it would mean that Quest Diagnostics paid a multiple of 1.2 times net revenue on that purchase.
HC1.COM NAMED RED HERRING GLOBAL 100 WINNER
It was big news at hc1.com in Indianapolis, Indiana, this fall when the fast-growing company was named to the Red Herring Global 100 Company list. Since 1996, investors have looked at this list as an “an instrument for discovering and advocating the most promising private ventures from around the world.” U.S. companies named to this list in the past have included Google, YouTube, and eBay. hc1.com entered the market in 2011 with its lab-specific customer relationship management (CRM) product, which is a cloud-based service. The Indianapolis Business Journal reported in December that hc1.com’s service was being used in 500 healthcare facilities and currently pulls data from more than 200 million health- care transactions annually.
TRANSITIONS
- Gene Cartwright was named as the new CEO for Guided Therapeutics, Inc., of Norcross, Georgia. Previously, Cartwright held positions at Omnyx, LLC, GE Healthcare, and Abbott Diagnostics.
- Howard Doran was appointed to be the new CEO and President at LipoScience Inc., of Raleigh, North Carolina. Doran has a lengthy career in the in vitro diagnostics industry. He has held executive positions with Constitution Medical, Hologic, Inc., and Cytyc Corporation.
Dark Daily Update
Have you caught the latest e-briefings from DARK Daily? If so, then you’d know about…
…how the Oregon Health Plan, the state’s Medicaid program, has developed 16 coordinated care organizations across the state. Special case management services will be directed to beneficiaries who are “high users” of health services.
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