Ophthalmic and neurosurgical device maker Synergetics (NSDQ:SURG) said today that it agreed to a $166-million takeover bid by Valeant Pharmaceuticals (NYSE:VRX, TSE:VRX), sending SURG shares up 52.6% to $6.70 apiece in pre-market trading today.
Valeant’s $6.50-per-share offer represents a 48.1% premium over Synergetics stock’s closing price yesterday of $4.39 per share and a 39.6% premium on its 3-month average.
The deal includes $1 per share in milestones, with a 50¢-per-share bonus tied to an annual sales mark of $55 million in ophthalmic products by June 30, 2018, and another 50¢ per share tied to annual ophthalmic sales of $65 million by the same date, Synergetics said. The 2nd milestone would be pro-rated for sales between the 2 targets, according to the company.
“We are pleased to reach an agreement with Valeant, which is a logical partner to maximize our company’s growth opportunities and, importantly, this agreement creates immediate and compelling value for our shareholders,” president & CEO David Hable said in prepared remarks. “The combined strengths of both companies will expand the breadth of our offerings and create a more effective competitor that is better able to meet our customers’ needs in the ophthalmology and neurosurgery markets.”
The $166.2-million deal is expected to close during the 4th quarter, O’Fallon, Mo.-based Synergetics said.
Late last year the company acquired a U.K.-based cannulae and needles maker Sterimedix for $13.5 million. In July Synergetics re-upped a supply deal with Stryker (NYSE:SYK).