Abbott Labs to Buy Alere for $5.8B

Drugmaker Abbott Laboratories said it would buy Alere for $5.8 billion to boost its global diagnostics business and enter into new markets.

Abbott will pay $56 per share in cash, a premium of about 51 percent to Alere's Friday closing of $37.20. Alere shares were trading at $54.65 before the opening bell on Monday.

Alere's diagnostic tests are used in doctors' offices, clinics and at home.

Abbott, which had total annual sales of $20.4 billion in 2015, said its total diagnostics sales would exceed $7 billion after the close of the deal.

The deal will be immediately add to Abbott's earnings per share upon close and contribute significantly thereafter, the companies said.

Evercore is the financial adviser to Abbott, while Kirkland & Ellis LLP is legal counsel.

JP Morgan is Alere's financial adviser, while Cravath, Swaine & Moore is legal counsel.

(Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty)