Abbott to spend $5.8 billion to acquire Alere

Drugmaker Abbott (NYSE: ABT) has entered into a definitive agreement for to acquire fellow USA-based Alere (NYSE: ALR), significantly advancing Abbott's global diagnostics presence and leadership.

Under the terms of the agreement, news of which sent Alere’s shares rocketing more than 45% to $54.03, Abbott will pay $56 per common share at a total expected equity value of $5.8 billion. Alere's net debt, currently $2.6 billion, will be assumed or refinanced by Abbott.  Once the transaction is completed, Abbott will become the leading diagnostics provider of point of care testing. Abbott's total diagnostics sales will exceed $7 billion after the close.

Deal immediately accretive to Abbott