Alere's Stock Spikes Following News of Its Impending Buy by Abbott

Shares of Alere soared on Monday on word that Abbott Labs would acquire the company in a deal valued at $7.9 billion.
Author:
Publish date:

Abbott Laboratories announced on Monday, Jan. 1, a $7.9 billion deal to buy Alere Inc., a provider of point-of-care testing that has spent the past several months streamlining operations following a management shake-up. Alere shares, listed on the New York Stock Exchange, soared more than 45% to about $54 in morning trading on Monday, assigning the target a market capitalization of about $4.66 billion. Terms of the agreement call for the Abbott Park, Ill., acquirer to pay $56 a share for Alere, implying a premium of more than 50% over the $37.20 price that Alere shares closed at on Friday, the last trading day before the deal's announcement. The acquisition equates to a total equity value of $5.8 billion at closing, according to Monday's announcement.