Solta Medical, Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics market, today announced it has entered into a definitive agreement to acquire privately-held Aesthera Corporation, which is based in Pleasanton, California. Under the terms of the definitive agreement, Solta will acquire Aesthera for $5.25 million in Solta common stock and cash, with potential additional base line milestones of $750,000 for a consideration of $6.0 million. Excluding acquisition and integration related charges, the transaction is expected to be accretive to Solta Medical's earnings within twelve months.
In addition, there are $10 million of stretch milestones which would be paid to Aesthera shareholders if Aesthera achieves revenue ranging from $14 to $21 million in the twelve months beginning April 1, 2010. The proposed transaction becomes increasingly accretive to Solta Medical shareholders as Aesthera achieves the higher milestone revenue and payments. Aesthera's unaudited revenue for the twelve months ended December 31, 2009 was approximately $8.5 million. Solta Medical expects to close the transaction prior to March 31, 2010.
Aesthera's light-based treatment systems - the Isolaz™ and Isolaz Pro ™ platforms – are based on proprietary Photopneumatic™ technology and are the only laser or light based devices with FDA marketing clearance for the treatment of inflammatory acne, comedonal acne, pustular acne, and mild-to-moderate inflammatory acne. These conditions impact an estimated forty-to-fifty million individuals in the U.S. annually. Isolaz treatments have an immediate visible impact on acne 24 – 48 hour post first treatment and are painless. Facial treatments take as little as 10 minutes, require no anesthetics or numbing creams, and provide additional cosmetic benefits such as smoother appearing skin.