Johnson & Johnson (J&J) has announced an agreement to acquire Abbott Medical Optics (AMO), a wholly-owned division of Abbott Laboratories, for $4.325 billion. The deal is expected to be finalized by the first quarter of 2017, and to be modestly accretive immediately to adjusted earnings per share, J&J said. Abbott Laboratories had acquired AMO for $2.8 billion in 2009. AMO develops equipments used in surgeries to repair cataracts, advanced laser vision technologies and multipurpose solutions for patients who use contact lenses. AMO generated revenues of $1.1 billion for 2015. This acquisition will expand the diversified eye health product portfolio of J&J Vision Care. Medical optics is J&J's third major business after drug development and generics. Abbott Laboratories is in the process of acquiring a stake in St. Jude Medical, and has also drawn a preliminary deal with Alere to buy the firm, and this merger with J&J is supposed to ease the financial burden on Abbott Laboratories.