STAAR Surgical abandons USD1.6B Alcon merger after shareholder opposition

USA—STAAR Surgical has officially terminated its USD1.6 billion merger agreement with Swiss eyecare company Alcon, bringing an end to months of contentious debate between the medical device manufacturer and its investors.

The deal collapsed after STAAR failed to secure sufficient shareholder approval during a special stockholders meeting held on January 6.

STAAR CEO Stephen Farrell acknowledged the decision with a measured response, stating that the company respects the voting outcome and plans to work closely with shareholders to chart the best course forward as an independent entity.

Meanwhile, Alcon CEO David Endicott emphasized that his company maintained a disciplined approach throughout negotiations, particularly regarding price considerations and risk assessment.

The merger announcement first came in August 2025, when STAAR executives presented the deal as a strategic necessity.

Farrell had openly admitted that the company faced significant challenges operating independently, particularly pointing to difficulties in China where government initiatives affecting medical device procurement had created substantial obstacles.

 These struggles became evident in STAAR’s first quarter 2025 financial results, which revealed a dramatic 45% drop in sales.

The company reported revenues of just USD42.6 million, representing a sharp decline from the USD77.4 million recorded during the same period in 2024.

Despite Farrell’s initial confidence that the Alcon transaction would deliver maximum value to shareholders, the company’s largest investor vehemently disagreed.

Broadwood Partners, which controls a substantial 27.5% stake in STAAR, quickly emerged as the deal’s primary opponent in September 2025.

The investment firm raised serious concerns about the board’s handling of the sale process, arguing that directors had failed to conduct an adequate search for potential buyers.

Broadwood also highlighted a significant discrepancy in Alcon’s offers, noting that the Swiss company had previously proposed USD55 per share when it attempted to acquire STAAR in October 2024.

This earlier bid stood considerably higher than the August offer of USD28 per share, raising questions about why STAAR’s board had accepted a substantially lower valuation.

Furthermore, Broadwood accused STAAR’s leadership of being uncooperative and opaque during the evaluation process.

The investment firm claimed it received no response to its formal request for books and records more than three weeks after making the demand, despite needing these documents to properly assess the merger agreement.

Throughout the final months of 2025, Broadwood continued pressing STAAR to reconsider its approach, even requesting that the company appoint new independent directors to oversee the merger process.

In an attempt to address investor concerns and demonstrate openness to better alternatives, STAAR and Alcon agreed to implement a 30-day “go-shop” period extending through December 6, 2025.

This window allowed STAAR and its financial advisors to actively solicit competing offers from other interested parties.

Alcon made one final effort to salvage the transaction in December 2025 by increasing its bid from USD1.5 billion to USD1.6 billion, raising the per-share price to USD30.75.

However, even this improved offer failed to convince skeptical investors that the deal served their best interests.

Following the merger’s termination, Broadwood founder and president Neal C. Bradsher expressed gratitude to fellow shareholders for their careful attention during the process and for ultimately rejecting the acquisition proposal.

Bradsher reaffirmed his firm’s confidence in STAAR’s ability to succeed independently and pledged continued support in helping the company unlock its full potential for all shareholders.