ABBOTT PARK, Ill.—Abbott (NYSE: ABT), a pharmaceuticals and medical products manufacturer, and Advanced Medical Optics (NYSE: EYE) have signed a definitive agreement for Abbott to acquire AMO for $22 per share in cash—a total value of approximately $2.8 billion, inclusive of estimated net debt at the time of closing.

Advanced Medical Optics’ stock closed on Friday at $8.85 per share.

“With AMO, Abbott is enhancing and strengthening its diverse mix of medical device businesses and gaining a leadership position in another large and growing segment,” said Miles White, Abbott’s chairman and chief executive officer. “Additionally, Abbott's significant global presence will help drive growth opportunities for this business, especially in international markets, where favorable demographics are driving demand for advanced eyecare procedures and products.”

Jim Mazzo, AMO’s chairman and CEO, will remain with Abbott as president of AMO, an announcement said. Mazzo commented, “This transaction underscores the fundamental value of the AMO franchise, the talent and expertise of our global team, and the strength of our product offering, pipeline and strategy to provide refractive vision care for people of all ages. Joining forces with Abbott will fortify our position as a global ophthalmic medical device leader and enhance our ability to serve eyecare practitioners and patients around the world.”

“With AMO, Abbott will immediately become a global leader in vision,” said John M. Capek, executive vice president, medical devices, for Abbott. “The business is poised for long-term growth, driven by advances in refractive surgery technologies, including LASIK, and an aging global population.”

Abbott will launch a tender offer by Jan. 26, to purchase all outstanding shares of AMO, which has approximately 62 million shares outstanding. The boards of directors of the two companies have already approved the transaction, which is subject to customary closing conditions, including antitrust clearances.

The acquisition is expected to close during the first quarter.