Abbott is expanding its medical device business with the $710m acquisition of OptiMedica, a Silicon Valley-based ophthalmic device firm, and IDEV Technologies, a Texas-based stent manufacturer.
Under the agreement, Abbott will acquire OptiMedica for $250m in an all-cash deal.
In addition, the firm will make payments of up to $150m following achievement of certain sales, regulatory or development milestones.
The purchase of OptiMedica is expected to widen Abbott's eye care business into the femtosecond laser-assisted cataract surgery market.
OptiMedica manufactures the Catalys precision laser system, which replaces some manual methods with an exact, computer-guided, femtosecond laser technology in the cataract surgical procedures.
This laser system has received both CE Mark in Europe and the US Food and Drug Administration approval.
Abbott medical optics senior vice-president Murthy Simhambhatla said that the acquisition of OptiMedica would provide the firm with an entry point into the rapidly developing laser cataract surgery market.
"The Catalys laser system provides physicians with a state-of-the-art, computer-guided alternative in treating patients suffering from cataracts," Simhambhatla said.
Abbott will acquire IDEV Technologies, a privately held firm that manufactures next-generation medical devices for use by interventional radiologists, vascular surgeons and cardiologists, for $310m in a mix of net cash and debt deal.
IDEV Technologies manufactures products such as SUPERA Veritas, a nitinol stent system that expands on its own and has received CE Mark in Europe for treating blockages in blood vessels due to peripheral artery disease.
Featuring an interwoven wire technology and designed on biomimetic principles, SUPERA Veritas promotes the flow of blood in the treated area, while providing flexibility and strength.
Abbott vascular senior vice-president Chuck Foltz said that the acquisition of IDEV Technologies would expand and complement the firm's existing peripheral technology portfolio of guidewires, balloon dilatation catheters and stents, making it one of the most comprehensive and competitive portfolios in the industry.
"This technology has the potential to make a significant impact on the treatment of patients who suffer from peripheral artery disease, a growing concern around the world," Foltz said.
Both the deals are expected to close by the end of the year following regulatory clearances and will not impact Abbott's current full-year 2013 EPS guidance.
Image: Global headquarters in Abbott Park, Illinois, US. Photo: courtesy of Abbott.