Portfolio News
AMO Buying IntraLase for $808M
By Vita Reed - Orange County Business Journal Staff
1/8/2007
Advanced Medical Optics Inc., the embattled Santa Ana-based eye device company, said Monday that it's buying Irvine-based rival IntraLase Corp. for $808 million.
The all-cash deal is a 12.5% premium over IntraLase's shares, which closed at $22.23 Friday.
The buy, which still must be approved by regulators and IntraLase's shareholders, is expected to wrap up in the early part of the second quarter, Advanced Medical said in a release.
IntraLase was the last major healthcare company in OC to have an initial public offering, raising $86 million in late 2004.
Getting IntraLase allows Advanced Medical to expand its product portfolio and cross sell to its customers.
IntraLase makes lasers and software to create a flap on a patient's cornea, the first step in fixing vision through surgery known as Lasik. The laser is designed to replace a microkeratome, a metal blade still commonly used to create corneal flaps.
Advanced Medical has nearly 60% share of the Lasik eye surgery market.
The deal "has long been speculated in the market because IntraLase's femtosecond laser technology is becoming the standard of care for creating a corneal flap during Lasik surgery," said Larry Biegelsen, an analyst with Prudential Financial Group, in a research note. A femtosecond is one quadrillionth of a second.
Advanced Medical revised its forecast for 2007, saying it now expects to earn between $83 million and $91.8 million. Sales for the year are expected to come in at $1.15 billion.
The company previously expected profits of $109.6 million to $118.4 million, with sales of $1.06 billion to $1.08 billion.
Analysts expected earnings of $106 million on revenue of $1.05 billion.