NeoGenomics Completes Clarient Acquisition

By Ron Shinkman, Editor, Laboratory Industry Report

Florida-based NeoGenomics has completed its acquisition of the Clarient Diagnostics unit from GE Healthcare. Clarient provides cancer diagnostics to hospitals, physicians, and drug companies.

The deal was valued at about $300 million. That included $80 million in cash, $110 million worth of NeoGenomics preferred stock, and 15 million shares of NeoGenomics common stock, also worth about $110 million. Clarient had 2014 revenue of about $127 million and pre-tax earnings of about $13 million.

The deal gives GE about a 32 percent stake in NeoGenomics. GE Healthcare will also be able to appoint its own director to the NeoGenomics board.

"We are very pleased to welcome each of our new employees to the NeoGenomics family, and to begin to add Clarient's outstanding capabilities to our strong service offering. The support of Clarient's employees and clients for our acquisition has been tremendous, and we appreciate the overwhelming support for the transaction by NeoGenomics shareholders," said NeoGenomics Chief Executive Officer Douglas VanOort in a statement. "Clearly, the acquisition of Clarient is a major step forward in achieving our vision to become America's premier cancer testing laboratory."

VanOort had previously forecast synergistic revenue growth of $4 million to $6 million during calendar 2016 as a result of the deal. NeoGenomics reported 2014 revenue of $87 million, and $72.5 million during the first three quarters of 2015. The company's stock has risen about 60 percent since the deal was announced last fall.