Covance sold to company from North Carolina

Headquarters for Covance unit to remain in New Jersey
Covance sold to company from North Carolina

Medical research company Covance is being acquired by North Carolina-based LabCorp in a $6.1 billion deal that will create the world’s leading health care diagnostic company.

The acquisition was announced Monday morning by both companies.

Both companies said LabCorp will pay a 32 percent premium to Covance shareholders to acquire the firm.

The corporate headquarters of both companies will be in Burlington, N.C. However, the Covance division headquarters will remain in Princeton, New Jersey.

LabCorp said they expect to achieve annual cost synergies in excess of $100 million to be fully realized within three years of closing.

There has been no word yet on whether the merger will result in layoffs at either companies. Right now, Covance employees more than 12,500 employees in more than 60 countries. Of those 12,500 employees, approximately 2,000 of them are in Madison.