Abbott Labs To Pay $123 Million In Cash For Starlims Tech

   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; [e-mail]