Abbott to acquire St. Jude Medical

Abbott announced that it will acquire St. Jude Medical in an effort to enhance its global scale and diversify its portfolio.

With the acquisition, Abbott will become a “premier medical device leader with top positioning in high-growth [CV] markets, including AF, structural heart and HF as well as a leading position in the high-growth neuromodulation market,” the company stated in a press release.

According to the release, St. Jude Medical’s strength in devices for cardiac rhythm management and treatment of HF and atrial fibrillation complements Abbott’s strength in devices for coronary intervention and transcatheter mitral valve repair, and will enable the combined company to compete in almost every facet of the CV market.

“The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world,” Miles D. White, chairman and CEO of Abbott, said in the release. The pipeline also includes products for diabetes, vision and neuromodulation, the company stated.

Michael T. Rousseau, St. Jude Medical’s president and CEO, said in the release that the deal is “an exciting next chapter” for St. Jude Medical as well, “bringing together two industry leaders with a shared passion for innovation, culture and patients. Our combined scale will expand the global reach, competitiveness and impact of our medical device innovation for physicians and hospitals.”

Under the terms of the deal, St. Jude Medical shareholders would receive on a per-share basis $46.75 in cash and 0.8708 shares of Abbott common stock, for a value of approximately $85 per share, according to the release.

Reference: White is an employee of Abbott. Rousseau is an employee of St. Jude Medical.