Abbott to Buy Device Maker St. Jude Medical for $25 Billion

Abbott Laboratories agreed to buy heart-device maker St. Jude Medical Inc. for $25 billion, its biggest ever acquisition as the industry consolidates to gain bargaining power with hospitals.

St. Jude Medical shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing a total of approximately $85 per share, according to an April 28 statement.

Device makers are merging to get access to new technology as hospitals push for lower prices. After shying away from mega deals since splitting its brand name pharmaceutical business to AbbVie Inc. in 2013, Abbott is now joining Medtronic Plc and Johnson ...