LabCorp to buy Covance in $6.1 billion cash and stock deal

LabCorp will pay about $6.1 billion in cash and stock to buy Covance in a tie-up that aims to improve clinical trial research for pharmaceuticals.

LabCorp said Monday that it will pay $105.12 for each share of the Princeton, New Jersey, company, representing a 32 percent premium to Covance's closing price Friday. Covance shareholders will receive $75.76 in cash and a portion of LabCorp stock for each share they own. They would hold a nearly 16 percent ownership stake in the combined company.

Laboratory Corporation of America Holdings, based in Burlington, North Carolina, says the new company will improve patient recruitment for trials, make the research more efficient and deliver drug data faster.

Covance Inc. shareholders still need to approve the deal, which is expected to close early next year.