Abbott Laboratories said Monday that it is buying Alere for $4.8 billion as it tries to expand its medical-testing business.
Alere makes tests used to diagnosis the flu, HIV, malaria and several other diseases. Abbott makes drugs, infant formula and medical devices.
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Abbott said Monday that it will pay $56 for each share of Alere, a 50 per cent premium from Friday’s closing price of $36.20. Abbott said the deal is worth $5.8 billion when restricted stock, stock options and preferred shares are included.
The deal is expected to close at the end of the year.
Shares of Alere Inc., based in Waltham, Massachusetts, jumped more than 45 per cent in premarket trading. Shares of Abbott, based in Abbott Park, Illinois, slipped about 2 per cent before the stock market open.
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