Cynosure (NSDQ:CYNO) said it closed its $287 million buyout of onetime rival Palomar Medical (NSDQ:PMTI) yesterday, issuing roughly 6 million shares and shelling out $146 million in cash for Burlington, Mass.-based Palomar.
The deal saw each Palomar shares converted into $6.825 in cash and 0.2819 shares of Cynosure stock, according to a press release.
The deal, announced in March, creates a combined installed base of more than 20,000 aesthetic laser systems in 100 countries. Together Cynosure and Palomar posted more than $234 million in sales last year.
Former Palomar CEO Joseph Caruso will join Cynosure’s board and take over president duties from Cynosure chairman & CEO Michael Davin; Cynosure CFO Timothy Baker added COO to his title, according to the release.
"Combining with Palomar brings together 2 world class research and development organizations creating what we believe is one of the world’s premier aesthetic laser and light-based companies," Davin said in prepared remarks. "We believe the acquisition complements our product portfolio and customer base, provides new product and service revenues, strengthens our global distribution network, opens new cross-selling opportunities and enhances our intellectual property position. We appreciate the overwhelming support of our stockholders in recognizing the value of this transaction to our long-term growth strategy. We welcome Palomar’s employees to the Cynosure team and look forward to the continued success of our unified organization."
Cynosure said it expects the acquisition to add $8 million to $10 million in "projected synergies" next year.
