Continuing recent string of merger and acquisition activity in Israeli firms as the year draws to a close, laboratory information management systems developer StarLIMS Technologies Ltd. (Nasdaq:LIMS); TASE: LIMS) said that it will be bought by global pharmaceutical giant Abbott Laboratories (NYSE: ABT) for $123 million.
The purchase is based on a per-share price of $14.
The share closed at $9.50, down 3.1%. Following news of the acquisition, the shares soared 43.3% in after-hours trading to $13.62.
Abbott will acquire all outstanding equity of StarLIMS. StarLIMS currently has about $18 million in cash on hand.
The use of information management and technology systems is becoming increasingly important to clinical laboratories as a means to automate the retrieval, communication and management of medical and laboratory data and aid compliance with global regulatory and industry standards.
StarLIMS said that Abbott will continue to support and expand the non-clinical market segments currently served by StarLIMS.
Abbott expects the transaction to close in the first quarter of 2010.
StarLIMS held its Tel Aviv Stock Exchange (TASE) IPO in 1993. The company has approximately 160 employees worldwide.
Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2009
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