Abbott to spend $19.3 billion to buy device maker St. Jude Medical

Abbott Laboratories will spend $19.3 billion to buy St. Jude Medical Inc. in a cash-stock deal that aims to strengthen the medical device maker’s share of the market for cardiovascular care.

North Chicago-based Abbott says St. Jude shareholders will receive $46.75 in cash and a portion of Abbott stock for each St. Jude share. The total consideration adds up to about $85 per share.

The deal value totals $25 billion based on Abbott’s recent stock price and assuming about $5.7 million in St. Jude debt.

Abbott says the boards of both companies have approved the deal, which is expected to close in the fourth quarter. Abbott expects the combined company to compete in nearly every area of cardiovascular care.

Abbott shares are slipping in early morning trading.