Abbott to Acquire St. Jude Medical

April 28, 2016—Abbott and St. Jude Medical, Inc. announced a definitive agreement for Abbott to acquire St. Jude Medical in a transaction valued at $25 billion. 

The companies stated that the combined company will have a pipeline expected to deliver new medical devices for cardiovascular, diabetes, vision, and neuromodulation patient care. St. Jude Medical’s devices for heart failure, atrial fibrillation, and cardiac rhythm management complement Abbott’s coronary intervention and transcatheter mitral repair products.

According to the companies, the combination will provide alignment with health care and demographic trends; leadership positions in core businesses; well-managed diversity to deliver reliable, sustainable growth; and strong positions in the world's largest and fastest-growing geographies.

The transaction, which has been approved by the boards of directors of St. Jude Medical and Abbott, is subject to the approval of St. Jude Medical shareholders and the satisfaction of customary closing conditions, including specified regulatory approvals. The transaction is expected to close in the fourth quarter of 2016.

Under the agreement, St. Jude Medical shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately $85 per share. At an Abbott stock price of $43.93, this represents a total transaction equity value of $25 billion. Additional financial information regarding the transaction is available online in the companies’ announcement.