Advanced Medical Optics of California plans to acquire VISX in a deal worth $1.27 billion in cash and shares that assigns very high multiples to the value of this leading laser surgery company. VISX had net profit of $23.2 million on revenues of $143.9 million in 2003, but AMO says the combination of the two companies will generate cost savings of $10-15 million as of next year and drive future growth. VISX will benefit from AMO's global distribution network, while AMO will benefit from VISX' reputation for the adoption of its own new refractive IOL technology. Earlier this year, AMO purchased Pfizer's ophthalmic surgical business, contributing to a net loss of $31.7 million for the 3rd quarter.