Abbott Laboratories will acquire diagnostic company Alere Inc for US$5.8 billion in order to expand its medical testing business.
Based in Waltham, Massachusettes, Alere makes tests used to diagnosis the flu, HIV, malaria and several other diseases that are used in doctor’s offices, clinics and at home.
The deal closure, which is expected to take place at the end of the year, Abbott said that the disgnostic business is expected to bring in more than US$7 billion in revenue annually.
Infant formula and nutritional beverages, which includes the Similac, Ensure and Pedialyte brands, is currently Abbott’s biggest business. That unit brought in US$6.98 billion last year.