Medical Laser Makers Merging
YOKNEAM, Israel & WAYLAND, Mass., Sept. 9, 2009 – Israel-based Syneron Medical Ltd. and Candela Corp. of Wayland, Mass., announced today that they will merge in an all-stock transaction valued at approximately $65 million.
The new company will have annualized revenues of more than $180 million, ranking it among the leading medical aesthetic device companies in the industry, the companies said.
Under terms of the merger agreement, which was unanimously approved by the boards of both companies, Candela shareholders will receive 0.2911 shares of Syneron for each share of Candela stock they own. That is a value of $2.84 per share, or a 51 percent premium over Candela’s closing price on Sept. 8. Syneron shareholders will retain their shares and will own about 80 percent of the combined company.
Founded in 2000, Syneron makes medical aesthetic devices based on its proprietary elos technology, which combines bipolar radio frequency and light for uses such as hair removal, wrinkle reduction and treatment of acne, leg veins and cellulite. Candela has been manufacturing aesthetic lasers for 20 years and says it has more than 14,000 systems installed worldwide.
Syneron will maintain its corporate headquarters in Israel and a North American office in Irvine, Calif. Candela will operate as a wholly owned subsidiary of Syneron and will maintain its offices in Wayland as well as subsidiary operations in Australia, France, Germany, Italy, Japan, Portugal, Spain and the UK.
Syneron CEO Louis P. Scafuri will be CEO of the combined company, and Candela president and CEO Gerard E. Puorro will join Syneron’s board. The management team for the new company will include executives from each organization.
“The product portfolio and commercial infrastructure of Syneron and Candela are highly complementary. The combined company will be extremely well-positioned to benefit from an improving macroeconomic climate,” Scafuri said. “We are going to take our time to build the right customer-focused organization for long-term growth and market leadership. At this initial stage, we are less concerned with driving immediate synergies that might risk disruption and compromise our ability to take advantage of the opportunities ahead.”
The transaction, subject to the approval of Candela’s shareholders, customary closing conditions and antitrust approvals, is expected to be completed by the end of 2009.
For more information, visit: www.syneron.com or www.candelalaser.com
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