Matria Healthcare, Inc. (MATR), a provider of disease management programs, has signed an agreement to acquire Quality Oncology, a national provider of cancer management programs, for $3 million in cash and $17 million in common stock.

In a prepared statement, Matria officials claim that Quality Oncology, a private company, is expected to generate 2002 revenues of $10 million, compared to $5 million last year, and that the acquisition slightly will dilute Matria’s 2002 earnings.

For 2002, Matria revenues increased 17 percent to $264 million while net income decreased 32 percent to $6.8 million, according to documents filed with the Securities and Exchange Commission. Shares of Matria stock ranged from $12.66 to $40 during the last 52 weeks, and recently traded near $18.80. The company’s market capitalization is $159.4 million.

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