Alere Inc (NYSE:ALR) has surged 16% in the pre-market after the Abbott Laboratories (NYSE:ABT) finally bit the bullet and agreed to an amended merger to buy Alere for $51 per share. Although $51 is lower than Abbott’s previous offer of $56 in cash per share, it is certainly good news for many Alere shareholders given the past circumstances. Abbott had previously wanted to back away from the deal altogether after the DOJ and other government agencies began probing Alere for various reasons. The two later went to court, with Abbott trying to terminate the merger and Alere trying to uphold the agreement. With today’s news, it seems that Alere was able to get the upper hand, albeit at a slightly lower price. The deal, which is worth around $5.3 billion, is expected to close by the end of Q3 2017. In addition, the two companies have agreed to dismiss their respective lawsuits against each other.
With the purchase, Abbott will gain more exposure to the fast growing point of care testing and medical device categories.
What Does The Smart Money Sentiment Say?
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Our data shows that the smart money was pretty bullish on Alere in the fourth quarter. Of the 742 elite funds we track, 44 funds owned $997.26 million of Alere Inc (NYSE:ALR) and accounted for 29.40% of the float on December 31, versus 44 funds and $1.1 billion respectively on September 30. 2.6% of the float was short.
The Bottom Line
Alere Inc (NYSE:ALR) shares have soared on amended buyout news. Specifically, Abbott has agreed to buy Alere for $51 per share. For more reading, check out ‘7 Best Paying Healthcare Jobs That Allow You To Travel‘.