Healthcare firm Abbott has signed an agreement to acquire diagnostic device and service provider Alere, for around $5.8bn.
Under the deal, Abbott will pay $56 per common share in cash to Alere shareholders.
Once the deal concludes, the combined firm will provide the broadest point of care menu of infectious disease, molecular, cardiometabolic and toxicology testing services.
Alere has developed easy-to-use and cost-effective tests, which are focused on the areas of infectious disease, molecular, cardiometabolic and toxicology.
It has developed tests for infections such as HIV, tuberculosis, malaria and dengue, which can be used in remote care settings.
Alere I is claimed to be the first molecular CLIA-waived test for flu and strep that provides results within 15 minutes.
The deal will allow Abbott to expand its diagnostics services to new channels and geographies, including doctors’ offices, clinics, pharmacies and at-home testing.
Abbott chairman and CEO Miles White said: "The combination of Alere and Abbott will create the world’s premier point of care testing business and significantly strengthen and grow Abbott’s diagnostics presence."
Alere president and CEO Namal Nawana said: "Today’s announcement marks an exciting and transformative milestone for Alere and one that provides an immediate benefit for our stockholders."
The deal is subject to the approval of Alere shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.
Abbott provides in vitro diagnostics services for the customers, including immunoassay, clinical chemistry, hematology, blood screening, molecular and point of care testing services.
Image: Abbott to acquire diagnostic device and service provider Alere. Photo: courtesy of stockimages / FreeDigitalPhotos.net.