Healthcare firm Abbott has signed an agreement to acquire St. Jude Medical for about $25bn.
As part of the deal, St. Jude Medical shareholders will secure $46.75 in cash and 0.8708 shares of Abbott common stock.
Based in St. Paul of Minnesota, St. Jude Medical has five product segments including heart failure, atrial fibrillation, neuromodulation, traditional cardiac rhythm management and cardiovascular.
St. Jude Medical produces products such as EnSite Precision next-generation cardiac mapping system, Proclaim Elite recharge-free spinal cord stimulation system and Prodigy chronic pain system, as well as MultiPoint pacing technology.
The combined company will have medical device products across cardiovascular, diabetes, vision and neuromodulation patient care.
Abbott said that its cardiovascular business and St. Jude Medical will hold the number one or two positions across cardiovascular device markets with combined annual sales of around $8.7bn and will compete in nearly every area of the market with an aggregate market opportunity of $30bn.
Abbott chairman and CEO Miles White said: "Bringing together these two great companies will create a premier medical device business and immediately advance Abbott’s strategic and competitive position.
"The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world."
St. Jude Medical president and CEO Michael Rousseau said: "Our combined scale will expand the global reach, competitiveness and impact of our medical device innovation for physicians and hospitals."
Subject to the approval of St. Jude Medical shareholders customary closing conditions, including specified regulatory approvals, the deal is expected to complete in the fourth quarter of this year.
Abbott’s vascular business produces products for coronary artery disease, endovascular disease and structural heart disease.
Image: St. Jude Medical global headquarters. Photo: courtesy of St. Jude Medical, Inc.