Abbott announced today that it agreed to put nearly $6 billion on the table for diagnostics giant Alere. The company claims that with this acquisition it aims to become the leading point-of-care testing provider with annual sales of more than $7 billion.
Abbott has agreed to pay $56 per share for Alere, which marks a 51 percent premium over the closing prices for Alere shares just days ago.
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Alere’s complementary portfolio of products, particularly with a focus on molecular diagnostics to detect influenza, is expected to provide Abbott access to new channels and geographies, including entry into fast-growing outlets, such as doctors’ offices, clinics, pharmacies and at-home testing.
Abbott said in a company statement that the deal will immediately add to earnings, but the agreement calls for Abbott to take on some $2.6 million in Alere debt. Evercore advised Abbott on the buyout, with Kirkland & Ellis providing legal counsel. JP Morgan advised Alere, with Cravath, Swaine & Moore as legal counsel.
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