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Bids, Mergers and Takeovers

Abbott Labs to acquire St. Jude Medical

28 April 2016 13:03

Abbott and St. Jude Medical, Inc. have announced a definitive agreement for Abbott to acquire St. Jude Medical.

Under the agreement, St. Jude Medical shareholders will receive USD46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately USD85 per share.

At an Abbott stock price of USD43.93, this represents a total transaction equity value of USD25 billion.

The combined company will have an industry-leading pipeline expected to deliver a steady stream of new medical device products across cardiovascular, diabetes, vision and neuromodulation patient care.

"Bringing together these two great companies will create a premier medical device business and immediately advance Abbott's strategic and competitive position," said Miles D. White, chairman and chief executive officer, Abbott. "The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world."

"Today's announcement is an exciting next chapter for St. Jude Medical, bringing together two industry leaders with a shared passion for innovation, culture and patients," said Michael T. Rousseau, St. Jude Medical president and chief executive officer. "Our combined scale will expand the global reach, competitiveness and impact of our medical device innovation for physicians and hospitals. This transaction provides our shareholders with immediate value and the opportunity to participate in the significant upside potential of the combined organization. I'd like to thank our 18,000 employees whose hard work and commitment help us deliver leading medical technologies to patients around the world."

Story provided by StockMarketWire.com

Related Company: ABT

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