Labcorp to Buy BioReference Health Assets: $722 Million Cash, Up to $150 Million Earnout

Labcorp will pay $722 million in cash at closing, subject to a revenue-based adjustment, plus a potential earnout of up to $150 million for selected BioReference Health assets.

Labcorp announced the agreement Thursday, Oct. 15. It will pay $722 million in cash at closing, with the amount subject to an adjustment based on the businesses’ revenue at that time. A further payment of up to $150 million may be made based on revenue from the 4Kscore Test.

The acquired portfolio includes more than 80 patient service centers and the 4Kscore Test. The FDA-approved blood test helps assess the risk of aggressive prostate cancer before a biopsy decision.

Labcorp expects the acquired business to generate about $250 million in revenue in its first year after closing. The companies will operate independently until the transaction closes, which requires regulatory approvals and customary closing conditions.