Wellesley, MA, December 11, 2018. Ampersand Capital Partners announced that portfolio company Genoptix Inc. has been acquired by NeoGenomics in a transaction valued at approximately $140 million, including $125 million in cash and 1 million shares of NeoGenomics common stock. Genoptix is a leading clinical oncology laboratory, specializing in hematology and solid tumor testing, with an outstanding reputation and relationship with community oncologists across the United States. Genoptix’s strong capabilities complement NeoGenomics’ leadership position with hospitals and pathologists.

“The acquisition of Genoptix enhances NeoGenomics’ leadership in the oncology test market, significantly expanding our coverage of oncology practices, increasing our customer reach and leaving us better positioned for growth.” said Douglas M. VanOort, NeoGenomics’ Chairman and CEO.  “With what we believe to be the most comprehensive oncology test menu in the country and reach across all distribution channels, the combined company will be uniquely positioned in the oncology test market.”

Benefits of the Transaction

• Advances expansion into community oncology practices. Genoptix has well-established relationships with community oncology practices, a sales force and pathologists that are experienced in serving oncologists, and customized reports that are considered to be the gold standard among community oncologists. Oncology practices are an important, and under-penetrated, channel for promoting NeoGenomics’ capabilities in next-generation sequencing and liquid biopsy.
• Leverages complementary services to create unprecedented offering in oncology testing market. NeoGenomics will draw on the best attributes from each company to improve the quality of service for all of our customers. Genoptix’s customers will benefit from NeoGenomics’ more comprehensive test offering, broad portfolio of managed care and GPO contracts, and national laboratory infrastructure. NeoGenomics’ customers will benefit from Genoptix customized consults and reports and extensive experience serving community oncologists. With deep relationships across all customer segments, NeoGenomics is positioned to better coordinate oncology testing between oncologists and pathologists within the community to improve patient care.
• Accelerates revenue and profit trajectory.The acquisition is expected to contribute $85 million of revenue and break-even EBITDA in year one, $25 million of cost synergies over time, and 25% EBITDA margin by the end of year three.

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About Genoptix

Genoptix is a leading clinical oncology laboratory specializing in hematology and solid tumors, and operates one of the largest hematopathology centers in the U.S. It provides personalized and comprehensive diagnostic services to hematologists, oncologists and pathologists, with a specialization in diagnosing cancers and disorders in bone marrow, blood and lymph nodes, as well as in solid tumor workups using molecular testing. Through an integrated approach to case management, Genoptix delivers individualized, actionable results for each patient to help the referring physician make the best treatment decision. www.genoptix.com.

About Ampersand Capital Partners

Founded in 1988, Ampersand is a middle market private equity firm dedicated to growth-oriented investments in the healthcare sector. With offices in Boston, MA and Amsterdam, Netherlands, Ampersand leverages a unique blend of private equity and operating experience to build value and drive superior long-term performance alongside its portfolio company management teams. Ampersand has helped build numerous market-leading companies across each of its core healthcare sectors, including Brammer Bio, Confluent Medical, Genewiz, Genoptix, Talecris Biotherapeutics and Viracor-IBT Laboratories. Additional information about Ampersand is available at www.ampersandcapital.com.