In a deal just announced, Abbott will be acquiring St. Jude Medical for $25 billion. The deal will create a medtech powerhouse in the cardiovascular and neuromodulation markets. St Jude currently holds top positions in heart failure, atrial fibrillation and cardiac rhythm management, while Abbott is top in coronary intervention and transcatheter mitral repair. The union of the two companies creates a market opportunity of nearly $30 billion.
“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 in a news release. “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.”
The transaction has been approved by St. Jude and Abbott board of directors and is subject to approval of St. Jude’s shareholders. It is expected to close by Q4 2016.
“Today’s announcement is an exciting next chapter for St. Jude Medical, bringing together two industry leaders with a shared passion for innovation, culture and patients,” said Michael T. Rousseau, St. Jude Medical president and CEO. “Our combined scale will expand the global reach, competitiveness and impact of our medical device innovation for physicians and hospitals.