NEW YORK (TheStreet) -- Shares of Alere (ALR) are skyrocketing by 45.38% to $54.08 on heavy trading volume in mid-afternoon trading on Monday, as Abott Laboratories (ABT) announced it will acquire the company for $5.8 billion.
About 24.84 million of Alere's shares traded hands by this afternoon, well above its average volume of 1.03 million shares per day.
Abbott will pay $56 per common share in cash and Alere will become its subsidiary at the completion of the transaction.
Waltham, MA-based Alere is a provider of health information through diagnostic tests.
"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," Abbott CEO Miles D. White said in a statement.
"We want to offer our customers the best and broadest diagnostics solutions. Alere helps us do that."
The Abbott Park, IL-based company is engaged in the discovery, development, manufacture and sale of a range of health care products.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations and expanding profit margins.
As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ALR