Glaukos announced that it has completed its previously announced acquisition of Avedro.
In August, Glaukos agreed to acquire cross-linking company Avedro in an all-stock transaction. Under the terms of the deal, Glaukos paid about $26.68 per share for a total value of about $500 million. The transaction represents about a 42% premium to acquire Avedro, which has a $291 million market cap. For each share of Avedro common stock they own, Avedro shareholders received an exchange ratio equivalent of 0.365 shares of Glaukos stock. Glaukos shareholders are expected to own approximately 85% of the combined company, with Avedro shareholders expected to own the remaining 15%.
“Today marks an important day for Glaukos as Avedro will serve as the cornerstone of our new corneal health franchise,” Thomas Burns, Glaukos president and chief executive officer, said in a company news release. “This transaction pairs two highly complementary, hybrid pharma and device organizations, combining Avedro’s novel bio-activated pharmaceutical solutions and R&D capabilities with Glaukos’ global commercial scale, proven market-building and shared reimbursement expertise, and extensive clinical and regulatory infrastructure. We’re excited to welcome the talented Avedro employees to the Glaukos organization to help build upon our solid foundation to transform Glaukos into a global ophthalmic pharmaceutical and device leader capable of serving the vision care needs of physicians and their patients for years to come.”
As a result of the acquisition’s close, Avedro’s common stock will now cease to trade on the Nasdaq.