U.S.-based giant Quest Diagnostics has completed its purchase of LifeLabs for $1.35 billion, including net debt, from OMERS.

Quest said the deal has approved all necessary approvals and is now closed.

Toronto-based LifeLabs ranks as Canada’s largest medical-testing company. OMERS is the Ontario Municipal Employees Retirement System, which ranks among the country’s largest pension fund managers.

“This acquisition brings together two industry leaders committed to enhancing access to diagnostic innovation for patients in North America,” said Jim Davis, chairman, CEO, and president of Seacaucus, N.J.-based Quest Diagnostics. “The combination of LifeLabs’ strong business and deep community presence with Quest’s specialized lab services and expertise creates a powerful opportunity to generate growth while improving care and outcomes for Canada’s expanding and aging population.”

Toronto-based LifeLabs was founded in Vancouver by late pathologist and entrepreneur Dr. Donald Rix. The company has 382 collection centres and 16 laboratories in Ontario, B.C., and Saskatchewan. OMERS had owned the company since 2007.

LifeLabs and its 6,500 employees will continue to operate under the LifeLabs brand. The management team and head office in Toronto will also remain the same.

But Quest will provide LifeLabs with new expertise, innovations and resources to strengthen the services provided by LifeLabs, said the parent company. Quest said it will also support LifeLabs’ data-security enhancements while ensuring Canadian patients’ health data remains in Canada.

A Fortune 500 company, Quest ranks among the world’s largest diagnostics companies and has 50,000 employees.

Quest expects the transaction to generate C$970 million in annual revenues.

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