ARTICLE | Company News

LabCorp acquiring Covance for $6.1B

November 4, 2014 2:15 AM UTC

Diagnostics company Laboratory Corp. of America Holdings (NYSE:LH) has agreed to acquire contract research organization Covance Inc. (NYSE:CVD) for $6.1 billion, or $105.12 per share, a 32% premium to the CRO's closing price on Oct. 31 before the deal was announced. The deal gives Covance shareholders $75.76 in cash and 0.2686 LabCorp shares per Covance share, which will give Covance shareholders about 15.5% of the combined company when the deal closes in 1Q15.

The CRO reported net revenues of $1.9 billion in the nine months through Sept. 30, and is guiding to $625-$635 in revenues for 4Q14. ...