Abbott Agrees To Buy Alere At Lower Price

(RTTNews) - Abbott Laboratories (ABT) and Alere Inc. (ALR) said Friday that they have agreed to amend the existing terms of their agreement for Abbott's acquisition of Alere. Additionally, the companies have agreed to dismiss their respective lawsuits.

As per the amended terms, Abbott will pay $51 per common share to acquire Alere, for a new expected equity value of approximately $5.3 billion, reduced from the originally expected equity value of approximately $5.8 billion.

The transaction is expected to close by the end of the third quarter of 2017, subject to the approval of Alere shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.

Under the amended terms, the date by which necessary regulatory approvals must be received has been extended to September30, 2017, from April 30, 2017.

On February 1, 2016, Alere agreed to be acquired by Abbott for $56 per common share in cash.