Portfolio News
Advanced Medical Optics
to Buy IntraLase Vision Laser Maker for $808 Million Cash
AP Advanced Medical Optics Buying IntraLase
Monday January 8, 8:16 am ET
SANTA ANA, Calif. (AP) — Eye care products maker Advanced Medical Optics Inc. said Monday it will buy vision correction laser maker IntraLase Corp. for about $808 million in cash. The company also lowered its earnings guidance for 2007.
Shares of IntraLase jumped $1.53, or 6.9 percent, to $23.76 in premarket electronic trading, after closing at $22.23 Friday on the Nasdaq. Shares have traded between $15.36 and $23.81 over the past 52 weeks.
Under the agreement, Advanced Medical Optics will pay $25 per share for IntraLase shares and an individually determined price for outstanding stock options. IntraLase has about 28.7 million shares outstanding.
Advance Medical said the deal will expand its line of offerings and cross-selling opportunities between the two companies' customer bases. The boards of both companies have approved the deal and financial advisers for each are assessing the fairness of the offer. Following IntraLase shareholder and regulatory approval, the transaction is expected to close early in the second quarter.
Advanced Medical Optics said the deal will reduce earnings in 2007 and add slightly in 2008.
The company lowered its 2007 profit outlook to a range of $1.40 to $1.55 per share, from a previous forecast of $1.85 to $2 per share and raised its revenue guidance to $1.15 billion to $1.18 billion, from $1.06 billion to $1.08 billion. Advanced Medical Optics also forecast 2008 earnings per share of $2.25 to $2.40 on revenue of $1.35 billion to $1.37 billion.
Analysts surveyed by Thomson Financial expect 2007 earnings per share of $1.79 on revenue of $1.05 billion and $2.33 on revenue of $1.11 billion in 2008.