Medical products and drug maker Abbott Laboratories (ABT) unveiled a $1.4 billion deal for Advanced Medical Optics (EYE) on Monday in a transaction that amounts to a 150% premium on the eye care company.

The offer sent shares of AMO 145% higher to $21.52 in pre-market trading. AMO closed at $8.85 on Friday but eclipsed $24 in June before its stock collapsed. In fact, AMO’s shares consistently traded above $20 prior to September.

Santa Ana, Calif.-based Advanced Medical sells and manufactures products related to eye care, including laser vision correction products.

The companies expect the deal to close in the first quarter as both boards of directors have approved the transaction. Including $1.4 billion in debt, the total deal for is worth $2.8 billion.

Abbott sees the deal having no impact on 2009 earnings but it will likely add to profits in 2010.

“Through superior vision care technologies and service, AMO has established itself as a leader in this multi-billion dollar medical device segment. 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," Abbott CEO Miles White said in a statement.

Jim Mazzo, chairman and CEO at AMO, will stay with the combined company as president of AMO.

"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," said Mazzo in a statement. "Joining forces with Abbott will fortify our position as a global ophthalmic medical device leader and enhance our ability to serve eye care practitioners and patients around the world."