Add-on Acquisition • Healthcare Services

Quest Diagnostics Acquires Solstas Lab Partners

On January 22, 2014, Quest Diagnostics acquired healthcare services company Solstas Lab Partners from Welsh Carson Anderson & Stowe for 570M USD

Acquisition Context
  • This is Quest Diagnostics’ 9th transaction in the Healthcare Services sector.
  • This is Quest Diagnostics’ 5th largest (disclosed) transaction.
  • This is Quest Diagnostics’ 13th transaction in the United States.
  • This is Quest Diagnostics’ 1st transaction in North Carolina.

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M&A Deal Summary

Date January 22, 2014
Target Solstas Lab Partners
Sector Healthcare Services
Buyer(s) Quest Diagnostics
Sellers(s) Welsh Carson Anderson & Stowe
Deal Type Add-on Acquisition
Deal Value 570M USD

Target Company

Solstas Lab Partners

Greensboro, North Carolina, United States
Solstas Lab Partners LLC (Fomerly Spectrum Laboratory Network) is a leading regional provider of clinical laboratory and disease screening services. The Company is headquartered in Greensboro, North Carolina, and covers the Southeastern U.S., providing hospital quality testing to over 10,000 physicians, 11 hospitals, nursing homes, home health, clinics, urgent care facilities, and other businesses and industries.
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Buyer Overview 1

Buyer

Quest Diagnostics

Secaucus, New Jersey, United States

Category Company
Founded 1967
Sector Healthcare Services
Employees45,000
Revenue 9.9B USD (2024)
DESCRIPTION

Quest Diagnostics is a provider of diagnostic information services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic information services through its network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff. Quest Diagnostics was founded in 1967 and is based in Secaucus, New Jersey.


Deal Context for Buyer #
Overall 14 of 39
Sector: Healthcare Services 9 of 23
Type: Add-on Acquisition 11 of 26
State: North Carolina 1 of 2
Country: United States 13 of 36
Year: 2014 1 of 2
Size (of disclosed) 5 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-10-07 ConVerge Diagnostic Services

Peabody, Massachusetts, United States

ConVerge Diagnostic Services LLC is a full-service regional laboratory providing clinical, cytology and anatomic pathology testing services.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-11 Summit Health-CityMD

Novi, Michigan, United States

Summit Health-CityMD is a provider of primary and specialty care needs. Summit Health-CityMD was founded in 2004 and is based in Novi, Michigan.

Buy -

Seller Profile 1

SELLER

Welsh Carson Anderson & Stowe

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1979
PE ASSETS 31.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Welsh Carson Anderson & Stowe (WCAS) is a mega-sized, specialist private equity firm focused on investments in growth-oriented companies operating within the healthcare and technology/tech-enabled services industries. WCAS will consider small and large transactions; including venture investments, growth equity investments, buy-and-build transactions, public-to-private acquisitions, and corporate carve-outs. The Firm prefers control situations and generally seeks opportunities in the US. Welsh Carson Anderson & Stowe was formed in 1979 and is based in New York City.


Deal Context for Seller #
Overall 43 of 76
Sector: Healthcare Services 14 of 26
Type: Add-on Acquisition 29 of 44
State: North Carolina 2 of 3
Country: United States 42 of 73
Year: 2014 1 of 7
Size (of disclosed) 20 of 33
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-11-14 Service Repair Solutions

Las Vegas, Nevada, United States

Service Repair Solutions, Inc. is a provider of software and services to the automobile insurance claims processing and decision support industries.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-15 Paycom

Oklahoma City, Oklahoma, United States

Paycom is a cloud-based HCM software solution delivered as Software-as-a-Service. The Company provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. Paycom's solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and HR management applications. Paycom was established in 1998 and is headquartered in Oklahoma City, Oklahoma.

Sell -