Under the terms of the deal, Israel-based Syneron will pay $7 million in cash up front and another $23 million contingent on certain financial milestones. Specific terms of the deal, expected to close by the end of the year, were not disclosed.
Primaeva makes a minimally invasive radio-frequency device to treat wrinkles and skin laxity. Founder and CEO Bankim Mehta will join the Syneron management team, according to a filing with the federal Securities and Exchange Commission.
In September, Syneron said it would pay $65 million to acquire one of its main rivals, Wayland, Mass.-based Candela. That deal calls for Candela shareholders to receive 0.2911 Syneron shares for each share of Candela, or $2.84 per share, a 51 percent premium. The agreement also has a “no-shop” covenant prohibiting Candela from seeking other suitors and a $2.6 million kill fee the Wayland company would owe the Israeli firm if the deal founders, according to a regulatory filing.
If the deal goes through, Candela will become a Syneron subsidiary, maintaining both its brand and its Bay State operations.
The deal also sets the stage for the continuation of Palomar Medical Technologies‘ prolonged legal battle against both companies. The Burlington, Mass.-based firm sued Candela and Syneron in the U.S. District Court for Massachusetts, alleging infringement of a pair of hair-removal technology patents.
The U.S. Patent and Trademark Office handed Palomar a pair of wins earlier this year, affirming the validity of both patents and multiple new claims within them.
And the European Patent Office upheld the patents in May as “novel and inventive” over its competitors’ intellectual property.