Alcon to acquire Staar Surgical for $28 per share in cash

Alcon (ALC) and STAAR Surgical (STAA) announced the companies have entered into a definitive merger agreement through which Alcon intends to acquire STAAR. The acquisition includes the EVO family of lenses for vision correction for patients with moderate to high myopia, with or without astigmatism. Under the terms of the agreement, Alcon will purchase all outstanding shares of Staar common stock for $28 per share in cash, which represents approximately a 59% premium to Staar’s 90-day Volume Weighted Average Price and a 51% premium to the closing price of Staar common stock on August 4. The transaction represents a total equity value of approximately $1.5B. The transaction is not subject to a financing condition. Alcon intends to finance the transaction through the issuance of short- and long-term credit facilities. The transaction is anticipated to close in approximately six to 12 months, subject to customary closing conditions, including regulatory approval and approval by Staar’s shareholders. The transaction is expected to be accretive to earnings in year two. The boards of directors of Alcon and Staar have each unanimously approved the transaction.