Abbott Laboratories will spend $19.3 billion to buy St. Jude Medical Inc. in a cash-stock deal that aims to strengthen the medical device maker’s stake in cardiovascular care.
Shares of North Chicago, Illinois-based Abbott plunged, while St. Jude soared early Thursday morning after the companies announced the deal.
Abbott expects the combined company to compete in nearly every area of cardiovascular care. It noted that the acquisition will blend St. Jude’s heart failure devices and cardiac rhythm management business with Abbott’s coronary intervention and transcatheter mitral repair products.
Abbott said St. Jude shareholders will receive $46.75 in cash and a portion of Abbott stock for each St. Jude share. The total consideration adds up to about $85 per share.
That represents a 37 percent premium to Wednesday’s $61.95 closing price of St. Jude shares.