Quest Diagnostics' revenues fell in the fourth quarter of 2013--a direct violation of its 5-point strategy including "restore growth"--but the company ($DGX) thinks its acquisition of prevention and wellness services outfit Summit Health will help fix those problems.
The transaction has been completed for an undisclosed sum. Quest first announced the deal March 11.
Scottsdale, AZ-based Summit Health offers biometric and health screenings, as well as immunizations, coaching and educational seminars.
"Together, our two companies will give employers, health plans and individuals greater access to a uniquely broad range of prevention and wellness services that use diagnostic insights to inform early intervention and preventive care and ultimately reduce healthcare costs," Quest CEO Steve Rusckowski said in a statement last month. "Our respective client bases, technology and service delivery platforms are complementary, and provide significant potential to enhance our offerings and accelerate growth in health and wellness, a large and fast growing segment within healthcare."
Summit's offering will primarily be available as private-label services that health plans and health-improvement companies can resell to other clients, such as employers, Quest said in its April 21 statement. Summit's clients will have access to Quest's resources such as 2,200 patient service centers, biometric analysis and electronic personal and population health reports.
The company touted the acquisition as representative of its 5-point strategy, which includes delivering disciplined capital deployment and strategically aligned accretive acquisitions.
Another part of the strategy is restoring growth. Quest hopes the acquisition will help it increase revenue, which fell 1% in Q4 2013 to $1.8 billion.
Rusckowski said in the April 21 statement that the acquisition "is well-aligned with our strategy to restore growth because it will extend the range of solutions we can offer in the growing health and wellness market."
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