1-800 Contacts is selling ClearLab's flat-pack technology and other intellectual property to Japan's Menicon and ClearLab's manufacturing, distribution and customer support operations to Korean-based manufacturer Mi Gwang Contact Lens Co.
CEO Jonathan Coon said the company felt confident that Menicon was the right party to own and exploit the flat-pack technology.
He added that the separation of ClearLab from the US retail business would allow management to focus time and attention on growing the latter.
The two transactions will provide $32m in cash and $6.5m in Mi Gwang stock, including a one-off payment of $23m by Menicon with deferred cash payments of up to $5m upon it reaching certain milestones, as well as possible earn-out payments on the launch of flat-pack products anywhere in the world, continuing right through to the 15th anniversary of the launch of flat-pack products in Japan.
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