NeoGenomics acquires lab

FORT MYERS — Cancer-testing firm NeoGenomics acquired Path Labs for $6 million, diversifying its laboratory services.

The transaction includes Path Logic's main laboratory in West Sacramento, Calif., as well as satellite facilities in Santa Ana and Fresno, Calif. Path Logic will operate as a subsidiary of NeoGenomics to provide specialized anatomic pathology services for clinical trials and pathology clients across the country.

“Path Logic has earned a reputation as one of the highest quality anatomic pathology laboratories in California,” says Douglas VanOort, NeoGenomics chairman and CEO, says in a statement. “With this expanded capability, both our clinical trial clients and our hospital and pathology-based clients will have access to an expanded product line and consulting expertise.”

Path Logic reported revenue of about $10 million with 65 employees last year. Fort Myers-based NeoGenomics reported $66.5 million in revenues in 2013 with labs in Fort Myers, Irvine, Cal., Nashville, Tenn., and Tampa.

“We estimate that $3 million to 4 million of revenue synergies can be realized in relatively short order as a result of our existing customers and Path Logic's customers having access to each other's testing menus and capabilities,” VanOort says in the statement. “In addition, as redundant costs are eliminated during the remainder of this year, we expect the acquisition of Path Logic to be accretive to our earnings within six months.”