Sometimes shareholders just aren't selling. STAAR Surgical Company (STAA) announced Tuesday that it failed to secure enough stockholder votes to approve its merger agreement with Alcon Inc. (ALC) at a special shareholder meeting, effectively killing the $1.6 billion deal.
STAAR intends to terminate its merger agreement with Alcon, and here's the silver lining: no termination fee will be payable by either party. STAAR will remain a standalone publicly traded company, charting its own course in the eye care market.
Stephen Farrell, CEO of STAAR, kept it simple in his statement: "In the short term, we will continue to prioritize profitable sales growth while we drive efficiencies through our distribution network. Our EVO ICL technology should be used more extensively worldwide, and it is our mission to achieve that objective."
The Opposition's Victory Lap
Broadwood Partners wasted no time celebrating the outcome. The investment firm, which holds a substantial 30.2% stake in STAAR, said Tuesday: "It is now time to focus on the road ahead. With its leading technology, strong financial position, privileged position in large markets, and clear path to growth and profit margin expansion in both the near term and the long term." Broadwood had been vocally opposed to the proposed sale from the start.
They weren't alone. In December 2025, Yunqi Capital Limited, which holds a 5.1% stake in STAAR Surgical, also issued a letter to shareholders opposing the deal. When your two largest outside investors are telling you to vote no, that's a pretty strong signal.
How We Got Here
The saga started back in August 2025, when eye care giant Alcon agreed to acquire STAAR Surgical, the manufacturer of the implantable collamer lens, for a total equity value of approximately $1.5 billion. That deal already faced resistance from major shareholders who thought the price undervalued the company's technology and growth prospects.
Alcon tried to sweeten the pot. The company amended the terms to $30.75 per share in cash, adding an additional approximately $150 million in equity value and bringing the total deal value to approximately $1.6 billion. But even that wasn't enough to convince shareholders that selling was the right move.
Price Action: STAAR Surgical shares were down 12.20% at $21.02 and Alcon shares were up 1.20% at $81.62 at the time of publication on Tuesday.
