Abbott to Gain Leadership in POC Diagnostics upon Acquisition of Alere

(Abbott Park, IL, USA) and Alere Inc. (Waltham, MA, USA) have reached a definitive agreement under which Abbott will pay an equity value of about USD 5.8 billion to acquire Alere. Once the transaction is completed, Abbott will become leading diagnostics provider of point-of-care (POC) testing. Abbott’s diagnostics presence and leadership will be significantly advanced as Alere's complementary technologies will help Abbott provide better care for patients by providing fast, accurate, and actionable medical information to help guide decision-making.

Under the terms of the agreement, Abbott will pay USD 56 per common share at a total expected equity value of USD 5.8 billion. The transaction will be immediately accretive to Abbott's ongoing earnings-per-share upon close and significantly accretive thereafter. Alere will become a subsidiary of Abbott.

The combined business will offer the broadest POC menu of infectious disease, molecular, cardiometabolic, and toxicology testing, expanding Abbott's platforms to include benchtop and rapid strip tests. Abbott will better serve an expansive customer base while also accelerating innovation.

Abbott will provide new, flexible, cost-effective, high-quality products to help meet growing demand in both in-patient and out-patient settings. Alere's complementary portfolio will provide Abbott access to new product applications, channels, and geographies, including entry into fast-growing outlets such as doctors' offices, clinics, pharmacies, and at-home testing. Alere has a large presence in the US and a growing presence in key international markets, where Abbott's capabilities and infrastructure will drive accelerated growth of Alere's portfolio.

"The combination of Alere and Abbott will create the world's premier POC testing business," said Miles D. White, chairman and CEO, Abbott, "We want to offer our customers the best and broadest diagnostics solutions. Alere helps us do that."

This “marks an exciting and transformative milestone for Alere, and one that provides an immediate benefit for our stockholders," said Namal Nawana, president and CEO, Alere, "Our leading platforms and global presence in POC diagnostics, combined with Abbott's broad portfolio of market-leading products, will accelerate our shared goal of improving patient care. I'd like to thank our global workforce of nearly 10,000 employees whose hard work and dedication has enabled Alere to contribute to improved patient outcomes throughout the world."

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