Abbott expands diagnostics and testing capabilities with Alere takeover

Abbott has announced a deal to acquire Alere for $5.8 billion (4.06 billion pounds), a move that will greatly expand its capabilities in the diagnostics and testing market.

Alere is currently the global leader in point-of-care diagnostics, with annual sales of $2.5 billion and more than 1.4 billion tests delivered at the point of care in 2015 alone.

Following the completion of the transaction, Abbott will become the leading diagnostics provider for point-of-care testing, with total diagnostic sales expected to exceed $7 billion after the close.

The combined business will offer the broadest point-of-care menu of infectious disease, molecular, cardiometabolic and toxicology testing, while Abbott will also be able to reach a broader audience in geographic terms.

Miles White, chairman and chief executive officer of Abbott, said: "The combination of Alere and Abbott will create the world's premier point-of-care testing business and significantly strengthen and grow Abbott's diagnostics presence."

Point-of-care testing currently represents a $5.5 billion market segment and is recognised as one of the fastest-growing in the vitro diagnostics sector.