Arizona device maker Ulthera is ditching its planned initial public offering in favor of a $600 million merger with larger aesthetics company Merz Inc., according to an SEC filing.
The healthcare company, which develops ultrasound-based skin-lifting devices, had hoped to raise as much as $86 million when it debuted on the NASDAQ stock exchange. Ulthera opted to remain private as a wholly owned subsidiary of Merz in the largest acquisition in Merz’s history.
"Joining with a like-minded, growing global healthcare company is a major milestone in the life of our company," Ulthera CEO Matt Likens said in prepared remarks. "Through our collaboration with Merz, we hope to introduce the Ulthera System to new customers and markets around the world."
Ulthera’s device is designed to use the body’s natural healing process to non-invasively lift and tighten loose skin on the eyebrow, the neck and under the chin. The Ulthera system combines ultrasound imaging with focused ultrasound therapy, representing the only energy-based device with an indication to "tighten turkey necks and smooth out double-chins," according to the company.
The company won 510(k) clearance from the FDA for the device in October 2012.