GE Healthcare, in an effort to strengthen its diagnostic imaging division, announced its acquisition of Clarient Inc. late last week, a deal worth $580 million.

GE expects to speed up its development of new tools for the diagnosis and characterization of cancer with technology from Clarient, a developer in molecular diagnostics, according to GE.

"GE Healthcare has built a world-class set of diagnostic information and life science technologies," said John Dineen, president and CEO of GE Healthcare, in prepared remarks. "Adding Clarient's leading technology to our portfolio will accelerate our expansion into cancer diagnostics and therapy selection tools."

The health care giant thinks it can build a $1 billion-plus business through development of integrated diagnostic solutions for cancer and other diseases.

The board of directors of Aliso Viejo, Calif.-based Clarient, approved the transaction and unanimously recommended that Clarient stockholders tender their shares in the transaction. GE will acquire any Clarient shares not purchased in the tender offer in a second-step merger at the same price per share paid in the tender offer, according to GE.

"This is good news for our stockholders, for the health care community and for patients," Ron Andrews, CEO and vice chairman of Clarient, in prepared remarks.

The deal is expected to close later this year or early next year.