Abbott Acquiring AlereAbbott Laboratories has reached an agreement to acquire Alere Inc for $5.8 billion. In a press release, Abbott said that once the transaction is completed, it will become the leading diagnostics provider of point of care testing. Alere’s complementary technologies will help Abbott provide better care for patients by meeting the growing demand for fast, accurate and actionable medical information.

Point-of-care tests provide deliver results in just minutes and can be easily conducted in a doctor’s office, clinic, ambulance, pharmacy and even at home. Speedy tests can improve care and reduce health care costs.

Abbott is a leading manufacturer of nutritionals and generic pharmaceuticals as well as wide array of diagnostic and medical devices such as hematology and point-of-care systems. Alere is a global leader in point-of-care diagnostics and delivers fast, easy-to-use and cost-effective tests for infections such as HIV, tuberculosis, malaria and dengue. Though more than half of Alere’s $2.5 billion in sales are in the U.S., the company also has a thriving presence in key international markets. With this deal, Abbott’s capabilities and infrastructure will speed up the growth of Alere’s portfolio.

The combined business will offer the broadest point-of-care menu of infectious disease, molecular, cardiometabolic and toxicology testing. By providing access to Alere’s new product applications, channels and geographies, this $5.8 billion deal will help Abbott to broaden its diagnostic footprint, expand its platforms to include benchtop and rapid strip tests, and gain leadership in the point-of-care segment.

Abbott’s chairman and chief executive officer Miles D. White 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. We want to offer our customers the best and broadest diagnostics solutions. Alere helps us do that.”