Dallas, Texas 02/18/2014 (FINANCIALSTRENDS) – LCA-Vision Inc.(NASDAQ:LCAV) announcement that it has consented to be acquired by PhotoMedex for $106 million or $5.37 per share, which is premium price considering it is 34% higher than current rates. The acquisition will see a new growth for the new company.
LCA-Vision Inc.(NASDAQ:LCAV) the Cincinnati-based retail optical services provider will now become part of PhotoMedex Inc, the boutique skin health-care company. This will help LCAV as the traffic which is headed to PhotoMedex Inc will move LCAV eye-care products.
LCA-Vision Inc.(NASDAQ:LCAV) and PhotoMedex Inc venture will see the higher value marketing and skin care products of the latter offer higher engagement for the formers products. While the agreement is yet in the definitive stage, both companies are expected to see businesses flourish.
LCA-Vision Inc.(NASDAQ:LCAV) acquisition costing 106.4 million will allow PhotoMedix to retain the 62 LasikPlus vision centers. It currently does not appear to be considering any layoffs, following the implementation of the deal on January 30, 2014. The deal is expected to move forward for PhotoMedix to leverage existing infrastructure of LCA-Vision Inc.(NASDAQ:LCAV) and the clinical professionals, staff allowing patients with skin diseases also to seek treatment at the same center. The company proposes that there will be marginal investment in the costs of training staff and no other likely investment in turnaround the real-estate and infrastructure LCAV has into profit-making units.
Additionally, PhotoMedix is expected to position the new venture as a company which deals with more than eye correction processes. The skin solution as well as the other services offered by PhotoMedex will ensure establishing laser-based medical solutions. The services will now span wellness, beauty products as well as consumer health and operations which are poised at supportive innovation. LCA-Vision had seen the highest sales and profits in 2007, with $32.5 million profit and $292.6 million sales. However, the long-drawn economic slowdown led to a loss of momentum from which the company failed to record or see much forward traction.