Cynosure, a leader in laser and light-based treatments announced the completion of its acquisition of Palomar Medical Technologies.
Cynosure purchased Palomar in a cash and stock transaction valued at approximately $287 million. In the transaction, Cynosure issued approximately six million shares and paid approximately $146 million in cash contributed by both Cynosure and Palomar.
“Combining with Palomar brings together two world class research and development organizations, creating what we believe is one of the world’s premier aesthetic laser and light-based companies,” said Michael Davin, Cynosure’s chairman and CEO.
“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. We appreciate the overwhelming support of our stockholders in recognizing the value of this transaction to our long-term growth strategy. We welcome Palomar’s employees to the Cynosure team and look forward to the continued success of our unified organization.”
The acquisition is expected to be accretive to Cynosure in calendar 2014 with the implementation of $8 million to $10 million in projected synergies. Following the closing, Michael Davin will serve as chairman and CEO; Joseph Caruso has joined Cynosure’s Board of Directors as vice chairman and will serve as president; and Timothy Baker will serve as executive vice president, chief operating officer and chief financial officer.