Swiss-American ophthalmic devices maker Alcon has announced a definitive merger agreement to acquire STAAR Surgical for around $1.5bn.
Under the deal, Alcon will purchase all outstanding shares of STAAR for $28 per share in cash, a 59% premium to STAAR’s 90-day average price.
Boards of Directors of both Alcon and STAAR have unanimously approved the proposed transaction.
The acquisition is expected to close in six to 12 months, pending regulatory and shareholder approvals.
Alcon plans to finance the transaction through short- and long-term credit facilities.
The acquisition is expected to enhance Alcon’s laser vision correction business and strengthen its position to address the growing demand for advanced vision correction solutions.
Alcon CEO David Endicott said: “With the number of high myopes rising globally, the acquisition of STAAR enhances our ability to offer a leading surgical vision correction solution for those who are not ideal candidates for other refractive surgeries such as LASIK.
“This transaction will allow us to provide treatment options across the full spectrum of myopia, from contact lenses to surgical interventions, reinforcing our commitment to addressing the most significant needs in eye care.”
STAAR Surgical designs, develops, manufactures and markets implantable lenses for the eye with companion delivery systems.
It is focused on refractive surgery using Implantable Collamer Lenses (ICL).
The acquisition includes the EVO family of lenses, designed for vision correction in patients with moderate to high myopia, with or without astigmatism.
The EVO ICLs offer a minimally invasive and reversible procedure, implanting lenses between the iris and the natural crystalline lens without removing corneal tissue.
Morgan Stanley & Co. served as financial advisor, and Gibson, Dunn & Crutcher as legal advisor to Alcon, on this transaction.
Citi served as the exclusive financial advisor, and Wachtell, Lipton, Rosen & Katz offered legal counsel to STAAR Surgical.
STAAR CEO Stephen Farrell said: “We believe the transaction with Alcon represents the best path forward and provides the greatest value for STAAR shareholders.
“As we’ve shared, fluctuating demand in China over the past two years has continued to create significant headwinds for STAAR as a standalone company.
“As a significantly larger company, Alcon has the capabilities and scale to accelerate EVO ICL adoption and bring our innovative technology to more surgeons and patients worldwide.”
Last month, Alcon agreed to acquire LumiThera, a US-based company specialising in light-based innovations in ophthalmology.
The acquisition includes LumiThera’s photo-bio-modulation (PBM) device for early and intermediate dry age-related macular degeneration (AMD).
