YOKNEAM, Israel, Nov. 9 -- Lumenis Ltd., formerly ESC Medical Systems Ltd., has executed a definitive purchase agreement to acquire HGM Medical Laser Systems Inc., a Salt Lake City developer and manufacturer of medical laser devices. The purchase price is $9.7 million in cash.
HGM has been marketing laser and delivery systems primarily to the ophthalmology market since the early 1980s. They have approximately 7,000 lasers installed around the world. FY2000 sales were approximately $7.8 million, with net income of $860,000. The transaction includes the purchase of a 50,000-square-foot facility valued at approximately $2.5 million.
"This transaction is part of Lumenis' strategy to grow through both organic development and strategic acquisitions. It strengthens our ophthalmic product offerings and signals our commitment to the ophthalmic business, which we acquired through the union with Coherent Medical Group," said Yacha Sutton, CEO and president of Lumenis.