Ellman, based in New York, develops RF devices and lasers used in aesthetic and multi-specialty surgery, such as facial plastic, gynecology, ophthalmology, podiatry and proctology. Ellman comes with about $25 million in recurring annual revenue and Cynosure expects the transaction to add to its earnings by the 1st quarter of 2015.
"This transaction complements our brand portfolio, expands our market opportunities and enhances our recurring revenue stream," Cynosure chairman & CEO Michael Davin said in prepared remarks. "Ellman’s RF product line broadens our technology platform, while its aesthetic lasers allow us to offer a value solution at a different price point than our current offerings."
Ellman has about 100 employees, and Cynosure said that it plans to keep "substantially" all of them following the merger, which will see Ellman become a subsidiary.
"What differentiates Ellman’s platform technology is its ability to consistently achieve favorable clinical outcomes with minimal tissue damage, rapid recovery and less scarring," Davin said. "We believe these assets are an excellent strategic fit for Cynosure."
CYNO shares got a boost today, gaining 3% to trade at $23.10 as of about 12:30 p.m. EST.