Cutera Inc. (NSDQ:CUTR) entered into a binding agreement with Mountain View, Calif.-based Iridex (NSDQ:IRIX) to purchase parts of its global aesthetic business arm for $5.1 million.

The deal is expected to advance Cutera’s place in the $1 billion global aesthetic business market, expanding the company’s presence in the vascular aesthetic sector while allowing Iridex room to focus on laser eye treatments.

"The acquisition of our aesthetic laser assets by Cutera places that technology and those customers in very capable hands and allows us to refocus all of our resources on the substantial and growing ophthalmology opportunity that is core to Iridex’ future," Iridex president & CEO Dominik Beck said in prepared remarks.

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"We are pleased to announce this transaction with Iridex which illustrates our strategy to leverage our products in the core markets and strengthens our global footprint, particularly in Europe," Cutera president & CEO Kevin Conners said in a prepared statement.  "Combined, we’ll offer one of the most comprehensive portfolios of vascular laser solutions in the industry today." 

The acquisition adds Iridex’ portable VariLite system to Cutera’s vascular treatment product options – including the company’s flagship Excel V laser.

The news of the acquisition didn’t do much for the Brisbane, Calif.-based laser maker on The Street. Shares of Cutera were up less than 1% to $7.52 this morning after a market close of $7.45 per share. After a rise to $7.77 in mid-morning trading, the stock price plummeted to $7.06 per share, a 5.72% loss.

Iridex fared slightly better, dropping 3% to $3.64 per share from market close to the opening bell. The west coast company’s stock recovered by mid-morning trading climbing back to $3.74 per share.

Cutera didn’t hint at any layoffs from the Iridex arm and said they planned to "leverage" the workforce and welcomed their future contributions.

The deal is expected to close in early 2012.