DOW JONES NEWSWIRES
Abbott Laboratories (ABT) has agreed to pay $123 million in cash
for Starlims Technologies Ltd. (LIMS) to strengthen its position in
the global diagnostics market.
Starlims' shares shot up 40% to $13.31 in after-hours trading as
the purchase price of $14 a share is 47% more than its Monday
closing price of $9.50. Abbott's shares slid 0.1% to $53.72.
Starlims' stock has more than doubled in the past year, while
Abbott's has gained 6%.
Starlims, which makes laboratory information management systems,
currently has $18 million in cash.
The acquisition will provide Abbott, a large health-care
products company, "with leading products to build upon existing
technologies and expertise in the emerging field of health-care
informatics," said Edward L. Michael, executive vice president,
Diagnostics Products.
Health-care informatics is described as the application of
information management and technology to the planning and delivery
of high-quality and cost-effective health care. Advanced
informatics systems automate the retrieval, communication and
management of medical and laboratory data and aid compliance with
global regulatory and industry standards. Improved laboratory
operations mean faster turnaround times and more consistent
interpretation of test results, according to an Abbott press
release.
Abbott said the acquisition would not affect its I2009
guidance.
Starlims Chief Executive Itschak Friedman will continue to lead
his team after the deal closes, expected in the first quarter.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com