• 28 MAY 15
    • 0

    Alere Furthers Divestment Strategy, Sells Off Analytics Division

    by Zacks Equity Research   Published on

    Alere Inc. (ALRSnapshot Report) is consistently executing on its strategy of divesting non-core assets. The strategy is not only helping the company to focus on its core rapid diagnostic test business but is also improving the cost structure and strengthening its balance sheet.

    Alere’s recent divestiture of Alere Analytics to Persivia is a part of this strategy. The deal follows the sale of Alere Health and its subsidiaries to Optum – the health services business unit of MN-based UnitedHealth Group (UNHAnalyst Report) – for $600 million in early 2015. The company paid off debt worth $575.0 million from the proceeds.

    Additionally, Alere sold off the Alere ACS unit – its health information exchange system – which accounted for around half of the company’s total expenses in Connected Health. Alere also sold 40% of its stake in Vedalab for roughly $10 million in the third quarter of 2014. The company also divested its vet business unit, Bionote, for around $45 million.

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