The deal, which is expected to close in the first quarter of 2017, will be "modestly accretive immediately to adjusted earnings per share," Johnson & Johnson said in its statement.
Given that "eye health is one of the largest, fastest growing and most underserved segments in health care today," the acquisition will help J&J "become a more broad-based leader in vision care," Ashley McEvoy, company group chairman, said in a statement.
J&J shares were last slightly lower in afternoon trading, while Abbott shares were more than 1 percent higher.
The deal includes AMO's consumer eye health products, cataract surgery business and advanced laser vision (LASIK) technology.
This story is developing. Please check back for further updates.