Sponsored

Hologic acquires aesthetics company Cynosure for $1.65 billion

PelleFirm RF Body Treatment Systemfrom Cynosure

February 15, 2017
by Lauren Dubinsky , Senior Reporter
Hologic signed an agreement this week to acquire the medical aesthetics company Cynosure for approximately $1.65 billion. It will purchase all of Cynosure's outstanding shares for $66 each in cash.

Cynosure has a portfolio of over 20 products for noninvasive body contouring, hair removal, skin revitalization and women's health. The products are sold through direct sales and distributors in 130 plus countries.

The company recently launched the world's first FDA-cleared laser treatment for noninvasive body contouring, SculpSure. It also owns a carbon-dioxide laser for women's health called MonaLisa Touch.

Cynosure raked in $433.5 million in 2016 and reported top-line growth in 28 consecutive quarters. About 60 percent of the company's business comes from physicians outside the traditional areas of plastic surgery and dermatology, with a significant focus on OB/GYN applications.

The global medical aesthetics segment is worth more than $2 billion and is expected to grow at a low double-digit rate over the next few years. The aging population is taking an interest in aesthetics and physicians are looking to increase their cash-based procedures.

The aesthetics segment is not "subject to reimbursement risks, making it less cyclical," Margaret Kaczor, analyst at William Blair, told Reuters.

"Larger acquirers can access a fast growing, profitable market that is just in the first quarter of the game," she added.

On Monday, Botox manufacturer Allergan purchased Cynosure's competitor Zeltiq Aesthetics for around $2.48 billion.

The Hologic-Cynosure deal has an enterprise value of $1.44 billion net of cash. Hologic expects realized annualized cost synergies of about $25 million, three years after the close of the deal.

More Business Affairs

Siemens $300 million Walpole groundbreaking set for June 30

Philips to buy EEG technology manufacturer for approximately €32.9 million

Global hospital bed market to surpass $6 billion by 2021

Physician groups line up in support of proposed tweaks to MIPS and APMs

Philips to shutter Dunlee parts facility in Illinois, move operations to Germany

RaySearch inks OIS deal with the University of Wisconsin-Madison

Army to modernize battlefield radiography with Canon's mobile X-ray units

Better design needed for reusable devices, experts say

Survey finds radiologists want greater involvement in patient care

GE and Stryker announce 3-D printing partnership