GENEVA - Alcon (SIX/NYSE: ALC), a leader in eye care, has agreed to purchase LENSAR, Inc. (NASDAQ: LNSR), a company specializing in advanced laser solutions for cataract surgery, in a deal potentially worth up to approximately $430 million. LENSAR has shown remarkable market performance, with a 235% surge in share price over the past six months and strong revenue growth of nearly 27% over the last twelve months, according to InvestingPro data. The acquisition, announced today, includes the ALLY Robotic Cataract Laser Treatment System™, proprietary Streamline® software, and LENSAR’s legacy laser system, enhancing Alcon’s femtosecond laser-assisted cataract surgery (FLACS) offerings.
The definitive merger agreement stipulates that Alcon will buy all outstanding shares of LENSAR for $14.00 per share in cash, totaling an implied value of around $356 million. Additionally, there is a non-tradeable contingent value right of up to $2.75 per share, dependent on LENSAR’s products achieving 614,000 cumulative procedures between January 1, 2026, and December 31, 2027. InvestingPro analysis shows LENSAR maintains a healthy financial position with a current ratio of 2.8 and more cash than debt on its balance sheet, suggesting strong operational stability. If the milestone is met, the total potential consideration will reach $16.75 per share, representing a 24% premium over LENSAR’s 30-day volume-weighted average price (VWAP) and a 47% premium over its 90-day VWAP.
David Endicott, CEO of Alcon, expressed enthusiasm for integrating LENSAR’s next-generation technologies into Alcon’s portfolio, aiming to deliver advanced femtosecond laser technology to more surgeons globally and improve cataract surgery efficiency. FLACS technology allows for more precise and reproducible cataract surgeries by using a computer-guided laser for corneal incisions and lens fragmentation, which is significant given the high volume of cataract procedures—over 5 million in the U.S. and roughly 32 million worldwide annually.
Nick Curtis, CEO of LENSAR, highlighted the company’s dedication to innovation in cataract surgery laser technology and expressed confidence in Alcon’s ability to advance the industry further.
The transaction is expected to close in mid-to-late 2025, subject to customary closing conditions, including regulatory approvals and LENSAR stockholder approval. Lazard is acting as Alcon’s financial advisor, with Norton Rose Fulbright as legal advisor. LENSAR has appointed Wells Fargo as its financial advisor and Latham & Watkins LLP as legal advisor.
This press release contains forward-looking statements and is based on current expectations, beliefs, and assumptions. The completion of the acquisition is subject to risks and uncertainties, including regulatory approvals and stockholder consent. The information provided is based on a press release statement. Based on InvestingPro Fair Value analysis, LENSAR appears overvalued at current price levels. Discover comprehensive analysis and 8 additional ProTips for LENSAR, along with detailed financial metrics and expert insights, available exclusively through InvestingPro’s in-depth research reports covering over 1,400 US stocks.
In other recent news, LENSAR, Inc. reported fourth-quarter 2024 results that surpassed analyst expectations for revenue. The company achieved $16.7 million in revenue for the quarter, exceeding the consensus estimate of $14.95 million and marking a 38% increase from the previous year. Despite this revenue success, LENSAR reported a loss of $1.61 per share, wider than the anticipated $0.18 per share loss. The strong revenue performance was attributed to increased sales of its ALLY Robotic Cataract Laser Systems and higher procedure volumes. LENSAR placed 31 ALLY systems in the fourth quarter, bringing the total placements for 2024 to over 80, an 86% increase from 2023. The company’s total installed base grew to approximately 385 systems, with worldwide procedure volumes rising 24% in 2024 to nearly 170,000. Additionally, LENSAR’s recurring revenue, including procedure, lease, and service revenue, exceeded $40 million for the full year, reflecting a 23% increase from 2023. The company projects continued growth in ALLY placements and recurring revenue in 2025, aiming for accelerated topline revenue growth beyond the 27% achieved in 2024.
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