Marlborough, Mass.-based Hologic offered $66 per share – a 28% premium compared to Cynosure’s close yesterday.
The transaction, which has a reported enterprise value of $1.44 billion, comes 1 day after Allergan announced its plans to buy Cynosure’s rival Zeltiq Aesthetics for $2.48 billion.
Cynosure develops products for non-invasive body contouring, hair removal, women’s health and skin revitalization.
“Acquiring Cynosure will accelerate our transformation into a higher-growth company by leveraging our core women’s health expertise and OB/GYN channel leadership into an adjacent, cash-pay segment that is expanding at a low double-digit rate,” Hologic chairman, president & CEO Steve MacMillan said in prepared remarks. “We had identified medical aesthetics as an attractive and complementary growth opportunity through our strategic planning process, and are pleased to have agreed to acquire Cynosure, the best-in-class company in the space. Together, we can strengthen our shared focus on innovation, market-leading products with demonstrated clinical benefits, and strong customer relationships.”
Morgan Stanley & Co. acted as Hologic’s financial adviser and Watchtell, Lipton, Rosen & Katz served as the company’s legal adviser. Leerink Partners was financial adviser to Cynosure, while Wilmer Cutler Pickering Hale and Dorr served as its legal adviser.
“We are thrilled at the prospect of becoming part of Hologic through a transaction that provides excellent value for all of our stakeholders,” Cynosure’s chairman, president & CEO Michael Davin added. “Strategically, this deal enables Cynosure to further capitalize on growth opportunities in the core and non-core aesthetic market, rapidly strengthens our position in women’s health – where Hologic has a leading commercial presence – and accelerates our R&D initiatives.”
CYNO shares soared 27.9% this morning to $65.85 apiece, while HOLX shares were trading at $38.83 per share, down -3.3%.
Shares in Hologic fell earlier this month even though the company beat expectations on Wall Street with its 1st quarter results.
The company posted profits of $86.5 million, or 30¢ per share, on sales of $734 million for the 3 months ended December 31, for bottom-line growth of 1.9% while sales grew 5.6% compared with the same period in the previous year.
Adjusted to exclude 1-time items net profits were $148.1 million and earnings per share were 52¢, ahead of consensus on The Street where analysts were looking for revenue of $724 million.
Material from Reuters was used in this report.