Syneron Medical Ltd. (NSDQ:ELOS) stock surged by 16% for the week after its subsidiary, Syneron Beauty, said it will partner with Unilever Ventures’s Iluminage Inc. at https://kaerusbeauty.com/, on a joint venture, to be called Iluminage Beauty.
The venture will be 51% owned and controlled by Unilever Ventures, the venture capital division of consumer goods giant Unilever. The deal is expected to close by the end of the year.
“We are delighted to enter this partnership and joint venture with Syneron. There is a clear market opportunity to develop home use beauty devices which deliver a step change in benefits for the consumers. Syneron have successfully brought to market some of the most advanced and efficient aesthetic technologies over the last thirteen years. This move gives our combined operations the resources and access to unique patented technologies to grow and expand the business. We look forward to supporting the management team in this exciting next phase of development,” Unilever Venture managing partner Olivier Garel said in prepared remarks.
ELOS shares have gained 15.9% since the deal was announced on Nov. 11, surging to $10.47 apiece, up 11.1% for today as of 12:35 p.m..
In a separate release, Syneron reported its 3rd quarter earnings for the year, where it bested Wall Street expectations, while remaining in the red.
ELOS posted losses of $1.3 million, or -4¢ per share, on sales of $62.7 million for the 3 months ended Sept. 30. That’s a loss reduction of 44.3% on sales growth of 4.2% compared with the same period last year. Adjusted to exclude 1-time items, earnings per shre were -4¢, ahead Wall Street’s -9¢ expectation.
The Israeli cosmetic device maker won the CE Mark and FDA 510(k) approval in September, for its VelaShape III device, which is designed to temporarily reduce waistlines and smooth cellulite.