Cynosure Inc has purchased Palomar Medical Technologies for US$294 million. The acquisition further expands Cynosure's exposure in light based devices used in the treatment of scars and wrinkles.
This purchase comes at the time when non-invasive or minimally invasive cosmetic procedures are back in vogue after years of being in doldrums due to the recent recession forced many to avoid elective procedures. In 2012, nearly 73% of surgeries performed were elective in nature compared to reconstructive procedures in data obtained from American Academy of Plastic and Reconstructive Surgery.
With the purchase, each Palomar share is worth US$13.65 broken into US$6.825 in cash and US$6.825 in stock. This is an 8% premium to share values at the close of trading, where Palomar rose to US$13.30 by midday.
As part of the deal, Cynosure would issue 5.2 million shares for the deal to fund US$147 million through cash outlay. Former CEO of Palomar Joseph Caruso would join Cynosure as Vice Chairman of the board and as President of the company.
Join the Conversation