Shares of genetic diagnostics company Celera (NASDAQ:CRA) surged more than 30% to a 52-week high on Friday upon news that Quest Diagnostics (NYSE:DGX) will acquire the company for $657 million.
At $8 a share, the price offers a premium of 28% to Celera’s closing price on Thursday.
In a statement, Quest CEO Kathy Ordonez said the acquisition will help to strengthen its leadership position in molecular diagnostics discovery and development and drive “sustainable revenue growth.”
The lab-testing company will gain through the deal immediate access to a range of proprietary tests and products.
Celera on Friday reported fourth-quarter net income of $2.5 million, or 3 cents a share, compared with $3.6 million, or 4 cents a share, in the same quarter last year. Revenue for the Alameda, Calif.-based company was $34.9 million, slightly lower than $39.2 million in the year-earlier period.
Analysts polled by Thomson Reuters expected, on average, a loss of 5 cents on revenue of $35.39 million.
The acquisition, approved by both companies' board of directors, is slated to close by the end of April.