In an announcement made on Wednesday, the human and veterinary medical equipment company Abaxis Inc. (NASDAQ:ABAX) will be acquired by the animal health company Zoetis Inc. (NYSE:ZTS).
Zoetis will purchase Abaxis for a nearly $2 billion USD, or $83.00 per share, in cash and the agreement is expected to be finalized before the end of 2018.
According to Zoetis CEO, Juan Ramón Alaix has said the two companies “can bring more veterinarian customers a broader range of products” and will help to improve financial growth, in the US and other countries that Zoetis is established in.
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Zoetis also expects that the merging of the two companies will add to Zoetis’ presence in veterinary diagnostics. The company predicts that the transaction will have some impact on its financial earnings report.
Nearly 83% of Abaxis Inc. annual revenue is from the products and services meant for the veterinary market.
Abaxis recently launched its new VetScan FLEX4 Rapid Test, which is meant to help detect diseases, such as Heartworm, Lyme, Ehrlichia, and Anaplasma, in dogs. In addition, the company also released its VetScan Canine Pancreatic Lipase Rapid Test in dogs.
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CEO and Chairman of Abaxis Inc., Clint Severson, has said that the global presence of Zoetis will be able “to deliver greater value to more customers around the world and accelerate the growth of [Abaxis’] international operations.”
The share value of Abaxis has reached just a little over the $83.00 acquisition price on Wednesday after the announcement, which is a rise of over 15%. As of 1:35 pm EDT on Wednesday, shares had reached $83.10.
The company has already reached a high shared value of $83.24 and a low of $82.19.
This is a significant jump compared to the company’s closing share value of $71.75 on Tuesday, where shares reached a high of $72.06 and a low of $71.05.
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