Valeant is not stopping its streak of acquisitions just yet. On Wednesday, the Montreal, Canada-based company announced its plan to acquire Synergetics more than two weeks after it bought female viagra maker Sprout Pharmaceuticals.
Reuters has learned that Valeant has decided on which company it plans to buy for its eighth acquisition this 2015, and it is no other than ophthalmic surgical device maker Synergetics.
The company announced that it is buying all outstanding shares of Synergetics for $6.50 per share, making the deal value close to $166.2 million in total.
Synergetics is a company that specializes in neorosurgery and opthalmology devices, so at $166.2 million, the acquisition is cheaper than Valeant's two other acquisitions this year that's amounting to $1 billion.
However, Valeant has a strategic plan in this purchase since it is aiming to boost Bausch + Lomb, which it reportedly bought in 2013 for a whopping $8.7 billion. Valeant sees Synergetics' products as the key to strengthening the said 2013-acquired business, as per Chron.
"The addition of Synergetics' portfolio of instruments and devices will further enhance Bausch + Lomb's presence around the world in the rapidly evolving field of vitreoretinal surgery," said Valeant CEO and chairman J. Michael Pearson.
The terms also cover the $1 per share cash payment to shareholders should Synergetics reach $65 million in sales of its ophthalmology products in the years to come.
"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," Synergetics CEO and President David M. Hable was quoted as saying in a press release on Valeant's website.
The acquisition news comes a couple of weeks after Valeant bought Sprout Pharmaceuticals, the maker of the female libido-increasing drug, for $1 billion.
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