Alcon to Acquire STAAR Surgical for $1.5 Billion, Expanding Refractive Surgery Portfolio

Alcon, a global leader in eye care, has announced its agreement to acquire STAAR Surgical, a manufacturer of implantable lenses, for approximately $1.5 billion. The all-cash transaction, which values STAAR at $28 per share, represents a significant move in the surgical vision correction market and comes at a time when STAAR has been facing challenges in its largest market, China.

Deal Overview and Strategic Rationale

The acquisition is set to bolster Alcon's presence in the surgical refractive market, complementing its existing laser vision correction business. David Endicott, CEO of Alcon, emphasized the strategic importance of the deal, stating, "This transaction will allow us to provide treatment options across the full spectrum of myopia – from contact lenses to surgical interventions."

STAAR's portfolio, which includes the Evo and Visian implantable collamer lenses (ICLs), offers an alternative to traditional corrective measures such as glasses, contact lenses, and LASIK surgery. These lenses are designed for patients with moderate to high myopia, regardless of astigmatism, and are implanted through a minimally invasive procedure.

Market Dynamics and Future Outlook

Alcon's decision to acquire STAAR comes against the backdrop of increasing global prevalence of myopia. The company estimates that by 2050, half of the world's population will have some form of nearsightedness, with nearly 500 million people currently living with high-grade myopia.

The acquisition is expected to be accretive to Alcon's earnings in the second year after closing. However, the deal still requires approval from STAAR shareholders and is anticipated to close within six months to a year.

STAAR's Recent Challenges and Market Position

STAAR has been grappling with significant headwinds, particularly in the Chinese market. The company reported a 45% year-over-year decline in net sales for the first quarter of 2025, primarily due to a planned reduction of channel inventory in China. This downturn led to a net loss of approximately $20 million in fiscal 2024 and necessitated layoffs of about 115 employees.

Stephen Farrell, who was appointed as STAAR's CEO in February 2025, acknowledged the company's struggles, stating, "Our results do not reflect the earnings power of our business or the strength of our brand." The acquisition by Alcon is viewed as a strategic move to leverage STAAR's innovative technology while benefiting from Alcon's larger scale and capabilities.

BTIG analyst Ryan Zimmerman characterized the deal as "solid" for Alcon, considering STAAR's recent market challenges. Zimmerman noted that Alcon is betting on a recovery in the Chinese market and the long-term potential of lens-based refractive surgery.