Quest Diagnostics, a provider of diagnostic information services, has acquired ConVerge Diagnostic Services, a full-service laboratory providing clinical, cytology and anatomic pathology testing services to patients, physicians and hospitals in New England.
ConVerge is a part Water Street Healthcare Partners, a strategic investor focused exclusively on the health care industry. Financial terms of the transaction were not disclosed.
The deal includes ConVerge’s laboratory in Peabody, Massachusetts, and its patient service centers operating in Massachusetts, New Hampshire and Connecticut.
ConVerge will operate as a wholly-owned subsidiary of Quest Diagnostics and its laboratory will operate as part of Quest Diagnostics’ national laboratory network.
Quest has been divesting non-core assets. Since late last year, Quest has sold its OralDNA dental diagnostics business, HemoCue diagnostic products business, Ibrutinib royalty rights and Enterix colorectal-cancer product business, generating gross proceeds of about $800m.
In addition, the company has also now acquired four laboratory businesses in 2013.
The acquisition of ConVerge is strategically aligned with Quest Diagnostics’ acquisition in January of UMass Memorial Medical Center’s clinical and anatomic pathology outreach laboratory businesses based in Worcester, Massachusetts.