Abbott acquires medical tests maker Alere for US$5.8 billion

New York

ABBOTT said on Monday that it had agreed to acquire Alere for an expected US$5.8 billion to enhance its diagnostics business.

Alere, which had a market value of US$3.2 billion last Friday, makes "point of care" medical tests that can provide results in a matter of minutes. The company, based in Waltham, Massachusetts, will become a subsidiary of Abbott, which is expecting to have annual diagnostic sales of US$7 billion after the transaction closes, according to a statement released by the companies on Monday. "We want to offer our customers the best and broadest diagnostics solutions," Miles White, chairman and chief executive of Abbott, said. "Alere helps us do that."