Chinese investment fund XIO Group is acquiring Lumenis Ltd, which develops surgical, ophthalmology and aesthetic applications, for $14 per share in cash, for an aggregate purchase price of $510 million. This is a 16% premium on the Yokneam based company’s closing price on Nasdaq yesterday and 20% above its IPO price in early 2014.
Lumenis CEO Tzipi Ozer-Armon said, “This acquisition is a strong recognition and vote of confidence in Lumenis’ achievements and its employees, and I am excited about the future prospects of Lumenis. Over the past 3 years we have managed to transform Lumenis into a strong, growing and profitable company. We have refocused our strategy, introduced new products, and tripled our EBITDA. Furthermore, we have created a very bright and promising future for Lumenis by building a robust pipeline of innovative products, a strong sales team in each region, and by enhancing our global brand recognition. I am confident that we will continue to thrive and reach new heights together with XIO Group.”
Lumenis chairman Harel Beit-On said, “Over the last years, we had an opportunity to lead Lumenis through a strategic transformation into a valuable growing business with global appeal. We respect and appreciate the efforts of Lumenis management and employees and wish the company continued success.”
The two largest shareholders of Lumenis, Viola Group and XT Hi-Tech Investments (1992) Ltd., which collectively own approximately 59% of the shares of Lumenis, have entered into a customary voting agreement with XIO Group.
Goldman Sachs acted as the exclusive financial advisor to Lumenis in respect of this transaction. Morgan Stanley acted as the exclusive financial advisor to XIO Group, a global multi-billion dollar alternative investments firm with offices in London, Hong Kong and Shanghai.