Abbott Labs, Alere deal moves forward
ABBOTT PARK, Ill., and WALTHAM, Mass. – Abbott Laboratories has agreed to buy Alere, but at a lower price than it previously offered.
Under 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 $5.8 billion, according to a press release.
Abbott first announced plans to buy Alere in February 2016. Later that year, however, Abbott filed a complaint in the Delaware Court of Chancery, asking a judge to terminate the deal on the grounds that Alere was no longer the same company it agreed to buy.
Alere’s problems have included CMS revoking the billing privileges of its DME supply business, Arriva Medical, and allegations that it submitted claims for 211 dead patients over the past five years. Alere sued Abbott in the same court, asking a judge to enforce the deal.
CMS in January agreed not to terminate Arriva Medical’s mail-order contract for diabetes testing supplies while the provider appealed to have its licensed reinstated. A court in March denied Arriva’s motion for interim relief and denied CMS’s motion to dismiss Arriva’s complaint. Arriva says it’s considering options for appeal.
Abbott and Alere expect to close the transaction by the end of the third quarter of 2017.