NEW YORK (TheStreet) -- Shares of Lumenis Ltd. (LMNS) are advancing by 13.82% to $13.75 on heavy volume in late morning trading on Thursday, after the company that makes energy-based minimally invasive clinical solution products announced it is being acquired by XIO Group for approximately $510 million.
So far today, 2.30 million shares of Lumenis have exchanged hands as compared to its average daily volume of 63,000 shares.
"Over the past 3 years we have managed to transform Lumenis into a strong, growing and profitable company. We have refocused our strategy, introduced new products, and tripled our EBITDA," company CEO Tzipi Ozer-Armon said in a statement announcing the deal.
"Furthermore, we have created a very bright and promising future for Lumenis by building a robust pipeline of innovative products, a strong sales team in each region, and by enhancing our global brand recognition. I am confident that we will continue to thrive and reach new heights together with XIO Group," the CEO continued.
The transaction is expected to close in September of this year.
Separately, TheStreet Ratings team rates LUMENIS LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate LUMENIS LTD (LMNS) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."