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NEW YORK (TheStreet) -- Shares of Covance (CVD) were gaining 25.8% to $100.54 Monday after LabCorp (LH) - Get Laboratory Corporation of America Holdings Report announced it will acquire the medical laboratories and research company for about $6.1 billion.

LabCorp said it will pay $105.12 a share for Covance, which represents a 32% premium over the company's closing price on Friday. Each shareholder will receive $75.76 in cash and 0.2686 shares of LabCorp as part of the deal.

"This transaction provides LabCorp with immediate scale and a comprehensive market-leading platform in the $141 billion biopharmaceutical research & development market, while at the same time achieving the new sources of revenue, broader payor mix, and greater international presence we have long pursued'" LabCorp chairman and CEO David King said in a statement. "Covance also has market access and nutritional businesses that we view as great growth opportunities."

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TheStreet Ratings team rates COVANCE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

TheStreet Recommends

"We rate COVANCE INC (CVD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: CVD Ratings Report

CVD data by YCharts

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