Pathology and radiology provider Sonic Healthcare is buying German laboratory business Labco for 76 million euros ($A110.58 million).

Labco operates five laboratories in west and south west Germany, generating annual revenue of 53 million euros ($A77.11 million).

The business will be quickly integrated into Sonic’s existing German operations, and synergies are expected to be realised progressively through the first year of ownership, Sonic said.

Sonic chief executive Colin Goldschmidt said the acquisition is a significant step in the company’s growth strategy for Germany, where it already operates six pathology businesses.

The Labco transaction is expected to completed by the end of 2013, and remains subject to antitrust approval.

Sonic shares were up 16 cents at $15.91 at 1244 AEST.