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(Reuters) - Canadian medical diagnostic services provider LifeLabs Medical Laboratory Services said on Tuesday that it was acquiring rival CML HealthCare Inc in a deal valued at about C$965 million ($917 million).
The deal will bring together LifeLabs and CML's network of laboratory testing services for patients across the province of Ontario.
LifeLabs, which is indirectly owned by the Ontario Municipal Employees Retirement System, will pay C$10.75 per share, a 49 percent premium to CML's closing price on Monday.
Including the assumption of C$255 million of debt, the transaction is worth C$1.22 billion, CML said in a statement.
The boards of CML, LifeLabs and OMERS have approved the deal. CML shareholders will vote on it at a special meeting on September 3. The parties expect the transaction to close later that month.
($1 = 1.0527 Canadian dollars)
Reporting by Euan Rocha in Toronto and Krithika Krishnamurthy in Bangalore; Editing by Don Sebastian and Lisa Von Ahn