Syneron Medical enters into agreement to acquire New Star Lasers

Published on February 20, 2014 at 8:28 AM · No Comments

Syneron Medical Ltd. (NASDAQ: ELOS), the leading global aesthetic device company, announced today that it has entered into an agreement to acquire New Star Lasers, Inc., which conducts business as CoolTouch, Inc. ("CoolTouch"), for approximately $11 million in cash and earn out based on certain milestones of up to $4 million until end of 2015. New Star Lasers develops, manufactures and markets the CoolTouch family of aesthetic devices. CoolTouch's 2013 unaudited revenues were approximately $8.9 million. Syneron anticipates the acquisition, which is expected to close in March 2014, will be accretive to the Company's GAAP earnings per share starting in 2015. 

Acquisition strategic rationale:

  • Diversifies product portfolio, broadens customer base, and provides entry into significant new markets, including:
    • Varicose veins – reimbursable procedure in vascular surgery and core (plastic surgeons and dermatologists) aesthetic markets.
    • Laser assisted lipolysis – complementary minimally-invasive body shaping treatment option for core aesthetic markets.
  • Expands recurring revenue business model with CoolTouch installed base and per-procedure consumables.
  • Leverages Syneron's global sales channels and customer base to drive adoption of CoolTouch products, which have primarily been sold in the U.S.
  • Strengthens Syneron's product technology and intellectual property with strong portfolio of patents and licenses.

Shimon Eckhouse, Chief Executive Officer of Syneron, transitioning into active Chairman, commented, "The acquisition of CoolTouch significantly enhances Syneron's product offerings and market opportunity while also improving the recurring revenue profile of our business. We believe CoolTouch will add value to Syneron's product offerings by expanding our reach into new markets such as the endovascular treatment of varicose veins and minimally-invasive laser assisted lipolysis. In addition, the CoolTouch business model also supports our strategy to increase sales of products with recurring revenue streams. We are very pleased to welcome the CoolTouch team to Syneron and look forward to expanding adoption of their products and technology through our global commercial infrastructure."

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