AMO to be acquired by Abbott

Advanced Medical Optics (AMO) is to be acquired by Abbott, a global pharmaceutical and medical device company, the companies have announced in a statement. The $2.8 billion acquisition is expected by both companies to be completed in the first quarter of this year.

Abbott, one of the world's largest healthcare companies, currently has no presence in the ophthalmic market, although it markets its products in 130 countries globally. The acquisition will allow Abbott to take advantage of AMO's leading position in the LASIK surgical devices market, and to capitalize on the company's top-three position in the cataract surgical devices and contact lens care products markets.

Abbott will acquire AMO at $22 per share in a cash transaction, commencing on January 26, 2009. Jim Mazzo, the current chairman and chief executive officer of AMO will remain as AMO's president when the acquisition is complete.