Cynosure Completes Acquisition of Palomar
Aesthetic-laser maker Cynosure announced yesterday that it had completed the acquisition of rival laser specialist Palomar Medical Technologies for $146 million cash and 6 million shares for a total value of around $294 million.
The combined company will have an installed base of more than 20,000 aesthetic-laser systems worldwide, with a distribution network that spans more than 100 countries. The two laser makers had combined revenues of $234 million in 2012, with 52% of their product revenue coming from North America and 48% originating from international markets.
Cynosure Chairman and CEO Michael Davin said: "We believe the acquisition complements our product portfolio and customer base, provides new product and service revenues, strengthens our global distribution network, opens new cross-selling opportunities, and enhances our intellectual property position."
Under the terms of the agreement, each outstanding share of Palomar stock was converted into the right to receive $6.825 in cash and 0.2819 shares of Cynosure Class A common stock. The acquisition is expected to be accretive to Cynosure's earnings in 2014 with the synergies of $8 million to $10 million realized.
Following the closing, Davin will continue to serve as Chairman and CEO; Palomar's Joseph Caruso joined Cynosure's board of directors as vice chairman, and he will serve as the combined company's president; and Timothy Baker will serve as executive VP, COO, and CFO.
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