UPDATE: Updated to include newly obtained information on the deal from Syneron Medical
Syneron (NSDQ:ELOS) said today it inked an agreement to be acquired by private equity fund Apax Partners for approximately $397 million.
Through the deal, Apax Partners will pay $11 per share for all outstanding shares of Israeli aesthetic device developer Syneron. Syneron, and its Candela brand, produce aesthetic medical equipment including body contouring, hair removal and wrinkle reduction devices.
“This acquisition is a strong recognition of Syneron Candela’s leadership in the aesthetic medical device market, its leading world-class technology and unique global footprint. These exceptional assets are a result of the many years of hard work of our skillful and dedicated employees all over the world. We are confident that Apax will add significant value and expertise as Syneron Candela executes on its growth strategy while delivering innovative technologies to our customers and patients. I also believe that this transaction represents a positive outcome for our shareholders,” Syneron Candela co-founder & chair Dr. Shimon Eckhouse said in a press release.
The acquisition is subject to shareholder and regulatory approvals, the companies said, though Syneron’s board has already unanimously voted in support of the deal. The merger agreement will also include a “go-shop” period which is slated to end May 9.
“We have identified the medical aesthetics market as a highly attractive investment area given its long-term growth prospects. Syneron Candela is very well positioned to capture this opportunity, with its highly diversified geographic footprint, broad and market-leading products portfolio, exceptional R&D capabilities and cutting-edge technology. We are looking forward to partnering with the Syneron Candela team to continue its strong growth trajectory, and to seeing the even greater benefits it can deliver for customers and patients,” Apax partner & healthcare co-head Steven Dyson said in a prepared statement.
The acquisition price represents an approximately 4% premium on Syneron’s March 31 close price, according to Leerink Partner analyst Richard Newitter, though “go-shop period” could result in a potentially higher share price if another suitor is interested.
“And we do think a higher bid is possible, but we don’t think [Syneron] would fetch a multiple anywhere close to what other aesthetic assets have gone for. As we’ve written in the past companies that we think could potentially be interested in acquiring aesthetic device assets may include: Galderma, Merz, and Fosun,” Newitter wrote in a letter to investors.
The deal was originally reported in February, with Apax reportedly looking to pick up Syneron and its aesthetic devies for beetween $350 million and $400 million.
Material from Reuters was used in this report.
