Monday, Abbott Laboratories Incorporated announced it would buy Advanced Medical Optics (AMO) for $1.36 billion in order to expand its business into the eye-care products and laser vision market.

The deal entails a price of $22 per share, which translates as an approximate 150 percent premium for AMO shares that on Friday closed at $8.85, although back in June, their shares valued $24.90.

In pre-market trading, AMO shares jumped to $21.54, whereas Abbott ones registered a 12 percent decrease and fell to $51.05.

According to the two companies, AMO is the largest producer of surgical devices for LASIK laser vision corrective procedures worldwide, while it is ranked at no.2 in the cataract surgical device market and at no.3 in contact lens care products.

Nevertheless, the ongoing economic crisis has rendered the demand for eye-surgery to lessen, which resulted in AMO’s profits and shares going down, which in its turn, prompted the company to announce in November plans to reduce its workforce by about 190 employees (5 percent) in the attempt to cut costs.

Abbott stated that including an amount of $1.4 billion in debt, the transaction with AMO would total approximately $2.8 billion.

Moreover, the company said that it expected the deal, which is scheduled to be closed in the first quarter of 2009, to have no impact on revenue for this year, but to add to earnings beginning 2010.

The company’s forecast for 2009 shows earnings of $3.65 to $3.70 per share, which translates as a 10 percent growth.