Corporate News Blog – Alere Announces Agreement with the US Department of Justice; Settles the Investigations Concerning Previous Foreign Acquisitions

LONDON, UK / ACCESSWIRE / October 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Alere Inc. (NYSE: ALR), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=ALR. The Company reported on September 29, 2017, that the US Department of Justice has closed the previously announced investigation into, among other things, sales, sales practices and dealing with certain third parties, without taking any action against the Company. The investigation primarily concerned matters occurring at foreign subsidiaries previously acquired by Alere. The Company also announced that its acquisition by Abbott Laboratories (NYSE: ABT) is intended to close on October 03, 2017. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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The Announcement

Alere is a leading rapid diagnostic test Company, where it delivers rapid and actionable information by enhancing clinical and economic healthcare outcomes globally. The Company, which is focused on delivering rapid diagnostics for cardiometabolic disease, infectious disease, and toxicology, stated that it was pleased that the matter has been closed with no action taken against Alere. Also, the announcement concerning Abbott’s acquisition of Alere follows the receipt of all regulatory clearances required for closing.

Abbott Labs won US antitrust approval to buy Alere on the condition that it would sell two point-of-care medical testing businesses, according to the Federal Trade Commission. Abbott made the first offer to buy Alere in February 2016, which however was not executed owing to issues related to the Company’s accounting and sales practices. Alere agreed on September 28, 2017, to pay more than $13 million to resolve the SEC charges that it committed accounting fraud and made improper payments to foreign officials.

Hence, to win the US antitrust proposal, the FTC required Abbott to sell two types of point-of-care medical testing device businesses which could be used in doctor’s office, hospitals, and homes. The companies also agreed to divest a blood gas testing system that measures the oxygen and carbon dioxide in the blood and a cardiac marker system that could be used to determine quickly if a patient is having a heart attack or congestive heart failure.

The Initial Agreement

On October 21, 2016, Alere, the leader in rapid diagnostic test, announced that its shareholders had voted to approve the announced merger with Abbott. Initially, about 98% of the votes cast, voted in the favor of the merger, representing 77% of all outstanding Alere’s shares as of August 24, 2016. Post the close of the merger, according to the initial agreement, Alere’s shareholders were entitled to receive $56 per common share in cash, while Alere would become a subsidiary of Abbott.

On January 25, 2017, Alere announced that the European Commission has granted clearance for Abbott Labs to acquire the Company, according to the announcement made on February 01, 2016. However, on April 14, 2017, Abbott and Alere announced the amendment of existing terms of the agreement for the acquisition of Alere. Under the amended terms, Abbott agreed to pay $51 per common share to acquire Alere for a new expected equity value of about $5.3 billion, reduced from the originally expected equity of about $5.8 billion. This deal is set to help Abbott expand its point-of-care diagnostic testing, a market which views rapid growth as physicians are rapidly adopting rapid tests that speed up treatment.

Last Close Stock Review

At the closing bell, on Friday, September 29, 2017, Alere’s stock slightly climbed 0.49%, ending the trading session at $50.99. A total volume of 10.40 million shares have exchanged hands, which was higher than the 3-month average volume of 1.68 million shares. The Company’s stock price surged 1.59% in the last three months, 28.34% in the past six months, and 19.16% in the previous twelve months. Moreover, the stock soared 30.84% since the start of the year. The stock currently has a market cap of $4.44 billion.

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