Abbott Laboratories (NYSE: ABT) agreed to buy St. Jude Medical Inc. (NYSE: STJ) in a deal that values the maker of heart devices at $25 billion, making 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 a statement Thursday.

Medical devices makers are merging to get access to new technology as hospitals push for lower prices. St. Jude last year acquired Thoratec Corp. for $3.4 billion, adding left ventricular pump devices that take over for a failing heart.

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