Alcon has announced a definitive agreement to acquire STAAR Surgical Company, maker of the EVO Implantable Collamer Lens (ICL) for vision correction in patients with moderate to high myopia, including astigmatism.
Alcon will buy all outstanding shares of STAAR for $28 per share in cash, valuing the deal at about $1.5 billion—a 59% premium over STAAR’s 90-day VWAP. With myopia rates rising globally, EVO ICLs provide a reversible, minimally invasive solution that is implanted between the iris and the natural lens.
The deal, not subject to financing conditions, is expected to close within six to 12 months, pending regulatory and shareholder approval, and is anticipated to be accretive to earnings in year two. Both companies’ boards have approved the transaction.
Advisors: Morgan Stanley is serving as financial advisor to Alcon, and Gibson, Dunn & Crutcher is serving as legal advisor to Alcon. Citi is serving as the exclusive financial advisor to STAAR, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to STAAR.
KEY QUOTES:
“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.”
David Endicott, CEO of Alcon
“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. I’m proud of our team’s efforts to address recent challenges, but there is more work to do. 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.”
Stephen Farrell, CEO of STAAR
“The STAAR Board is committed to maximizing value for shareholders. We have determined that this carefully negotiated transaction is in the best interest of STAAR shareholders as it delivers immediate and certain value at a significant premium, value that exceeds what we believe could be achieved under STAAR’s standalone strategy.”
Dr. Elizabeth Yeu, Chair of the STAAR Board of Directors
