Abbott will sell its core laboratory diagnostics business included in the Abbott Diagnostics Division and Abbott Point of Care to GE for $8 billion in cash. Abbott’s Molecular Diagnostics and Diabetes Care businesses will remain part of Abbott.

Abbott has made several acquisitions during the last few years as part of its strategy to strengthen the mix of its medical and pharmaceutical portfolio toward technology-driven businesses in emerging therapeutic areas. These include: Knoll Pharmaceuticals in 2001, TheraSense (blood glucose monitoring) in 2004, and Guidant’s vascular business and Kos Pharmaceuticals (lipid management medicines), both in 2006. Abbott also spun off its hospital products business into a separate company, Hospira, in 2004.

“The laboratory diagnostics market has changed considerably in the last decade. Innovation in this segment will be increasingly driven by automation, system integration and a host of skills that GE can offer,” said Miles D. White, chairman and chief executive officer, Abbott. “As part of GE, Abbott’s core diagnostics and point-of-care businesses will be powerfully positioned to sustain and extend their market success.”

The sale is expected to close in the first half of this year and is subject to customary closing conditions, including regulatory approvals.