The Massachusetts-based companies have a combined install-base of more than 20,000 aesthetic laser systems worldwide in 100 countries, and together they posted more than $234 million in sales during 2012, according to a prepared release.
Burlington, Mass.-based Palomar struggled last year in a crowded aesthetics market, swinging to a $6.1 million loss on $80.5 million in sales during 2012, compared to a $7.4 million profit on $103.4 million in sales. The company has more than $55 million in cash and equivalents in its coffers.
Westford, Mass.-based Cynosure reported a $10.9 million in net income on $153 million in sales in 2012.
The deal is the 2nd New England-based aesthetic laser maker that Cynosure has purchased in the past 2 years. The company snapped up Elemé Medical for a song in February 2011, paying $2.5 million for the Merrimack, N.H.-based group.
Although they have been competitors in the packed aesthetic laser market, Cynosure has licensed hair removal technology from Palomar since 2006, according to regulatory filings.
"We believe the acquisition of Palomar creates a substantial opportunity to generate profitable, long-term growth for our Company and drive value for our stockholders," Michael Davin, Cynosure’s chairman and CEO, said in a prepared release. "Combining with Palomar complements our product portfolio and customer base, adding new product and service revenues, strengthening our global distribution network, creating new cross-selling opportunities and enhancing our intellectual property position with the addition of more than 40 patents."