Cynosure Inc., a manufacturer of aesthetic laser systems, recently entered into an agreement with Palomar Medical Technologies Inc., a rival aesthetic laser system manufacturer, for a $294 million takeover.
The combined revenue of the two organisations was $234 million in 2012. Both board of directors voted unanimously to agree to the takeover, which will be complete by the third quarter of 2013.
Cynosure’s takeover bid is aimed at boosting its customer base by introducing complements to its current product line, as well as strengthening its distribution network to more than 100 countries worldwide.
Cynosure’s takeover was said to have been partly motivated by the patents that Palomar holds, which number more than 40.
The agreement will involve Cynosure paying $13.65 a share for Palomar, issuing 5.3 million shares and paying $147 million in cash. The acquisition will leave Palomar with a cash balance of $87 million, and the company will remain free of debt after the agreement is complete.