LabCorp’s purpose in the purchase is to expand its business to more research and development: “This transaction provides LabCorp with immediate scale and a comprehensive market-leading platform in the $14 billion biopharmaceutical research and development market, while at the same time achieving the new sources of revenue, broader payer mix and greater international presence we have long pursued,” said LabCorp chairman and CEIO David P. King in a news release.
LabCorp’s top executives will remain in their roles, and Covance’s chairman and CEO will continue to lead his business, which will retain its branding and headquarters.
The deal is expected to close in the first quarter of 2015.
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