OMERS has agreed to sell the LifeLabs network of 16 laboratories and 382 collection centres for providing and relaying diagnostic information to U.S.-based Quest Diagnostics for CAD $1.35 billion. The Canadian pension fund acquired the laboratory service, which operates an online portal for conveying test results of an estimated 8 million registrants, in 2007.

“OMERS is proud to have supported LifeLabs’ growth over the last 17 years. Our purchase in 2007 and subsequent investments have helped LifeLabs grow into a great Canadian success story,” says Michael Hill, OMERS’ executive vice president and global head of infrastructure.

The company will retain its Canadian brand, headquarters and management under the new ownership. Quest Diagnostics is a publicly traded company and leading provider of clinical testing, including a track record of specialized services for Canadian laboratories, hospitals and academic institutions. LifeLabs has also been a participant with Quest in a 12-member global diagnostic network for sharing expertise and advancing capabilities.

Quest reported revenue of USD $2.37 billion in the first quarter of 2024, and projects the LifeLabs acquisition will generate CAD $970 million (USD $710 million) in annual revenue. The deal is expected to close by the end of this year.

“We are committed to working with the LifeLabs team to ensure service continuity and enhance access and innovation to meet the needs of Canada’s growing and aging population,” maintains Jim Davis, the company’s chair, chief executive officer and president.

“Quest is the right partner to build on the strengths of LifeLabs and align with our strategic path,” says Charles Brown, president and chief executive officer of LifeLabs. “We sincerely thank OMERS for its investment, leadership, and valued collaboration over 17 years.”