General Electric Co. would buy two of Abbott Laboratories Inc.’s diagnostics business units (Abbott’s primary in-vitro diagnostics and Point-of-Care diagnostics) for $8.13 billion in cash.
Acquisition broadens GE’s reach into health care business and enlarges it to $16 billion. GE has entered into health care information technology and molecular diagnostics in the past few years.
Jeffrey Immelt, GE chairman and chief executive said,
The acquisition is consistent with GE’s strategy to invest in high-technology global infrastructure businesses that deliver strong top-line growth, earnings expansion and expanded margins.
Abbott Chairman and CEO Miles D. White supporting the deal
Market changes rapidly over the last decade and innovation in this segment will be increasingly driven by automation, system integration and a host of skills that GE can offer.
Market responded positively on the deal, shares of Abbott Laboratories rose $1.24, or 2.4 percent, to $52.79 nearly five year high. GE shares also bounce 2 percents to close at $38 on the New York Stock Exchange.
