NEW YORK (TheStreet) -- Shares of Alere (ALR) are soaring by 45.40% to $54.06 in pre-market trading on Monday, as the company will be bought by Abbott Laboratories (ABT) in a deal valued at $5.8 billion.
Alere shareholders will receive $56 per common share in cash at the completion of the transaction.
"Our leading platforms and global presence in point-of-care diagnostics, combined with Abbott's broad portfolio of market-leading products, will accelerate our shared goal of improving patient care," Alere President and CEO Namal Nawana said in a statement this morning.
Waltham, MA-based Alere is a provider of health information through diagnostic tests.
The combined business will offer testing for infectious diseases, molecular, cardiometabolic and toxicology and expand Abbott's platform to include benchtop and rapid strip tests.
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