Advanced Medical Optics, the Santa Ana-based maker of Lasik laser surgery devices and eye care products, announced today that international health care giant Abbott will buy the company for $1.36 billion.
Abbott, headquartered in Illinois, will pay $22 a share in cash, more than double AMO’s closing price of $8.85 on Friday. The total deal, including debt, is valued at $2.8 billion. The deal is expected to close this quarter.
AMO leads the market in Lasik surgical devices, is second in devices for cataract surgery and third in contact lens products, said the company.
In a letter to “Friends of AMO,” Chief Executive Jim Mazzo, said the deal was a strategic move by Abbott into the market for medical devices for eyes. He said it was also a good opportunity for AMO.
“This union with Abbott will enable us to explore new opportunities for growth and expansion, and accelerate our ability to deliver new innovations that address important needs,” Mazzo said.
AMO stock suffered a setback last fall because of lower demand for laser surgery due to the weakening economy. In the last 12 months, it had traded as high as $24.90. AMO announced in November it would lay off 190 people to reduce costs.
Read Mazzo’s letter HERE.
The full Abbott/AMO press release is HERE.
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Good, the company needed a new direction. The disgusting part? Mazzo and others will make off with millions from this deal after mismanaging the company for years.