Deal volume in the Laboratories, MRI & Dialysis sector is up 6% from this time last year. On September 28, two major players in the laboratory space traded hands and began collaborating on a kidney disease project.

Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic testing in the United States, announced its purchase of Shiel Medical Laboratory, Inc. from Fresenius Medical Care (NYSE: FMS). Fresenius acquired Shiel Medical Laboratory in October 2013 via its subsidiary Spectra Labs, which is not affected by the divestiture.

Founded in 1919, Shiel Medical is one of the oldest continuously operating clinical laboratories in the United States. Its main testing facility is in the Brooklyn Navy Yard.  Terms were not disclosed.

The acquisition, once completed, is expected to result in an expanded network of Quest patient service centers in the region. Providers will also have direct access to Quest’s broader menu of services. Services currently provided by Shiel’s laboratories in Rockleigh, New Jersey, and Brooklyn, New York, will transition to Quest’s clinical laboratory in Teterboro, New Jersey.

In addition to the asset purchase, Quest Diagnostics and Fresenius Medical Care will also collaborate on identifying patients with early-stage chronic kidney disease, based on Quest’s laboratory data analytics.