Abbott to Acquire St. Jude Medical

Abbott (Abbott Park, IL, USA) will pay USD 25 billion for St. Jude Medical (SJM, St. Paul, MN, USA), with the declared intention of creating a premier medical device company.

St. Jude Medical's strong positions in heart failure (HF), atrial fibrillation (AF) and cardiac rhythm management devices will complement Abbott's leading positions in coronary intervention and transcatheter mitral valve replacement (TMVR). Together, the combined company will also have a development pipeline expected to deliver a steady stream of new medical devices across cardiovascular, diabetes, vision, and neuromodulation patient care.

Examples of such products include the SJM EnSite Precision next-generation cardiac mapping system; multiPoint pacing technology to advance quadripolar technology and cardiac resynchronization therapy; and the Proclaim Elite recharge-free spinal cord stimulation system, among others. Abbott contributes the FreeStyle Libre sensor-based glucose monitoring system; the Tecnis Symfony, a continuous range of vision intraocular lens for the treatment of cataracts; and the Absorb bioresorbable coronary stent.

“Bringing together these two great companies will create a premier medical device business and immediately advance Abbott's strategic and competitive position,” said Miles D. White, chairman and CEO of Abbott. “The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world.”

“Our combined scale will expand the global reach, competitiveness and impact of our medical device innovation for physicians and hospitals,” said Michael Rousseau, president and CEO of St. Jude Medical. “This transaction provides our shareholders with immediate value and the opportunity to participate in the significant upside potential of the combined organization. I'd like to thank our 18,000 employees whose hard work and commitment help us deliver leading medical technologies to patients around the world.”

Under the agreement, St. Jude Medical shareholders will receive a cash payment and shares of Abbott common stock, representing a total consideration of approximately USD 85 per share; the cash portion of the agreement will be funded with medium- and long-term debt. Abbott will also take on St. Jude Medical's USD 5.7 billion in debt.

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