NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) shares are up 0.25% to $224.53 in early market trading on Wednesday after the company agreed to buy ophthalmic surgical device manufacturer Synergetics (SURG) .

Valeant will pay $6.50 for Synergetics outstanding shares in a deal that represents a 48% premium over the company's closing price on Tuesday.

The acquisition, which is expected to close in the fourth quarter, has a total value of about $166 million.

Valeant also said that Synergetics shareholders will receive additional cash payments of up to $1 per share if the company reaches certain sales milestones after the deal is completed.

TheStreet Ratings team rates VALEANT PHARMACEUTICALS INTL as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

TheStreet Recommends

"We rate VALEANT PHARMACEUTICALS INTL (VRX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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