Aesthetic laser makers Cynosure (NASDAQ: CYNO; Westford, MA) and Palomar Medical Technologies (NASDAQ: PMTI; Burlington, MA) have signed a definitive agreement in which Cynosure will acquire Palomar. The transaction is valued at approximately $294 million.
Michael Davin, Cynosure's chairman and CEO, notes that the acquistion creates new cross-selling opportunities and adds more than 40 patents to the company's portfolio.
The two companies have a total combined installed base of more than 20,000 aesthetic laser systems worldwide, with a distribution network that spans over 100 countries. Combined revenue in calendar year 2012 was more than $234 million, with 52% of product revenue coming from North America and 48% originating from international markets.
The transaction is subject to customary closing conditions, including the two companies' shareholder approval and regulatory approvals. Upon completion, Cynosure shareholders will own approximately 77% and Palomar shareholders will own approximately 23% of the combined company.
Davin will continue to serve as chairman and CEO; Timothy Baker will continue as executive vice president and CFO, adding a role as COO; and Joseph P. Caruso, Palomar's CEO, will serve as president and join the Board of Directors as vice chairman.
The company plans to relocate to Palomar's owned facility in Burlington, which is 15 miles south of Westford.
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