Abbott Laboratories said on Monday that it has reached a deal to acquire diagnostic testing company Alere Inc. for US$5.8 billion.
The company will pay US$56 per share in cash, a premium of about 51 percent to Alere’s closing price last Friday.
The deal comes as Abbott has struggled to boost sales growth after it sold its developed-markets generics business to Mylan in 2014, Reuters noted.
The company, which spun out AbbVie Inc. in 2013, reported lower-than-expected quarterly revenue for the first time in four quarters last week.
The Alere acquisition will help Abbott become the undisputed global leader in point-of-care diagnostics and help diversify its business.
Abbott, whose worldwide diagnostics sales were US$4.6 billion in 2015, said its total diagnostics sales would exceed US$7 billion after the close of the deal.
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