Quest Diagnostics and Haystack Oncology announced on April 27 a definitive agreement for Quest to acquire Haystack in an all-cash equity transaction.
Quest expects the acquisition to be modestly dilutive to earnings over the next three years and accretive by 2026. The transaction is expected to be completed in the second quarter of 2023, subject to customary regulatory review.
J.P. Morgan Securities LLC acted as exclusive financial advisor to Quest, and Weil, Gotshal & Manges LLP acted as Quest’s legal advisor. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Haystack, and Goodwin Proctor LLP acted as Haystack’s legal advisor.
Haystack Oncology is an early-stage oncology company focused on minimal residual disease testing to aid in the early, accurate detection of residual or recurring cancer and better inform therapy decisions. Haystack is based in Baltimore, Maryland, and has research facilities in Hamburg, Germany.
Quest Diagnostics provides diagnostic testing information services in the United States and internationally. Quest annually serves one in three adult Americans and half the physicians and hospitals in the United States with approximately 50,000 employees.
According to data captured in the LevinPro HC database, this marks the 46th Laboratories, MRI and Dialysis transaction of the year and the 23rd in the diagnostic subsector. From January 1, 2022, through April 27, 2022, 49 Laboratories, MRI and Dialysis and 37 diagnostic acquisitions were reported.
