Syneron Medical (ELOS) will purchase aesthetic laser pioneer Candela Corporation (CLZR) for $65 million, creating a global leader in the medical aesthetic device market. The all-stock transaction was approved by the Boards of Directors of both companies. Under the agreement, Candela will become a wholly-owned subsidiary of Syneron. Candela shareholders will receive 0.2911 shares of Syneron stock for every share of Candela common stock they own, totaling approximately $65 million. Syneron will issue 6.7 million shares to complete the deal. Syneron stockholders will keep their shares.
The merger brings together two high-profile players in the medical aesthetic device market. Syneron, based in Israel, manufactures devices to treat wrinkles, cellulite, rosaecea, acne, and more. Their products are powered by the company’s patented elos technology, which combines radio frequencies and light energies. Candela of Wayland, Mass., makes laser devices for aesthetic and medical use. The combined company will have over $180 million in annual proforma revenue, with approximately 62% of revenue generated outside the United States.
The energy-based aesthetic device market is expected to exceed $1 billion by 2011. Some of Synteron’s and Candela’s competitors include Eleme Medical, Cutera, and PhotoMedex.