LabCorp (NYSE:LH) said that the definitive agreement calls for the Burlington, North Carolina-based company to acquire all of the outstanding shares of Orchid (NASDAQ:ORCH) for $2.80 per share. That’s 39 percent more than Orchid’s April 5 closing price of $2.01.
LabCorp maintains a network of more than 1,500 labs spanning the country. The company reported more than $5 billion in 2010 revenue. LabCorp said that the Orchid acquisition strengthens the company’s presence in identity testing in the United States while also giving it a presence in the United Kingdom market, where Orchid also operates. Princeton, New Jersey-based Orchid reported $63.7 million in 2010 revenue.
The Orchid board of directors has already approved the agreement and merger plan determining that the offer and the merger are “advisable, fair to, and in the best interests of Orchid Cellmark and its stockholders.”
Orchid is the second acquisition for LabCorp in the last four months. The company in December completed its $925.2 million acquisition of Genzyme Genetics, a business unit of Genzyme (NASDAQ:GENZ). LabCorp said it made that deal to advance its personalized medicine strategy.