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Libertyville Township-based Abbott Laboratories agreed to consummate its troubled acquisition of Alere Inc. in a deal that values the medical test maker's equity at $5.3 billion, shaving $500 million from the original price and ending months of legal maneuvering that appeared headed for a Delaware court.
Alere shareholders will get $51 a share in cash, according to a statement Friday. While the new price is an 8.9 percent cut from the deal announced in February 2016, it's a 21 percent jump from the company's closing price on Thursday. The two parties were slated to meet in Delaware Chancery Court next week to begin hearings on Abbott's lawsuit to terminate the purchase.
The companies expect the transaction to close by the end of third quarter, pending shareholder and regulatory approval.
Abbott Laboratories agreed to buy Alere last year to gain the smaller company's suite of diagnostic testing devices and products. At the time the two U.S. companies said that the deal would boost Abbott's diagnostics business to about $7 billion in sales after closing.
Alere's main products are used for testing blood levels, as well as diseases like the flu and HIV. They are also used for testing for drug and alcohol use. Abbott already sells the I-Stat, which can run 26 common laboratory tests in minutes using just a few drops of blood.