Under a revised agreement, the companies agreed to reduce the original $5.8 billion price tag by roughly $500 million, dropping the total equity value of the deal to $5.3 billion. Alere shareholders will receive $51 per share in cash.
The two companies also agreed to terminate their respective lawsuits against each other. Abbott and Alere were slated to meet in Delaware Chancery Court next week to begin hearings on Abbott’s lawsuit to terminate the companies’ original agreement.
Officials expect to complete the purchase by the end of the third quarter, pending shareholder and regulatory approval.
Abbott agreed to purchase Alere in February 2016. In July 2016, federal investigators subpoenaed Alere over allegations regarding the company’s billing practices. Abbott and Alere then filed lawsuits against one another, with Alere attempting to force Abbott to go through with the original purchase agreement and Abbott accusing Alere of violating the terms of the agreement.
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