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Date Announced: 20 Feb 2014
CoolTouch family of products provides entry into significant new aesthetic market segments and expands Syneron's recurring revenue business model.
YOKNEAM, Israel, Feb. 20, 2014 /PRNewswire/ -- Syneron Medical Ltd. (ELOS), the leading global aesthetic device company, announced today that it has entered into an agreement to acquire New Star Lasers, Inc., which conducts business as CoolTouch, Inc. ("CoolTouch"), for approximately $11 million in cash and earn out based on certain milestones of up to $4 million until end of 2015.
New Star Lasers develops, manufactures and markets the CoolTouch family of aesthetic devices. CoolTouch's 2013 unaudited revenues were approximately $8.9 million. Syneron anticipates the acquisition, which is expected to close in March 2014, will be accretive to the Company's GAAP earnings per share starting in 2015.
Acquisition strategic rationale:
• Diversifies product portfolio, broadens customer base, and provides entry into significant new markets, including:
• Varicose veins – reimbursable procedure in vascular surgery and core (plastic surgeons and dermatologists) aesthetic markets.
• Laser assisted lipolysis – complementary minimally-invasive body shaping treatment option for core aesthetic markets.
• Expands recurring revenue business model with CoolTouch installed base and per-procedure consumables.
• Leverages Syneron's global sales channels and customer base to drive adoption of CoolTouch products, which have primarily been sold in the U.S.
• Strengthens Syneron's product technology and intellectual property with strong portfolio of patents and licenses.
Shimon Eckhouse, Chief Executive Officer of Syneron, transitioning into active Chairman, commented, "The acquisition of CoolTouch significantly enhances Syneron's product offerings and market opportunity while also improving the recurring revenue profile of our business. We believe CoolTouch will add value to Syneron's product offerings by expanding our reach into new markets such as the endovascular treatment of varicose veins and minimally-invasive laser assisted lipolysis.
In addition, the CoolTouch business model also supports our strategy to increase sales of products with recurring revenue streams. We are very pleased to welcome the CoolTouch team to Syneron and look forward to expanding adoption of their products and technology through our global commercial infrastructure."
The CoolTouch family of products utilizes New Star Lasers' signature 1320 nm wavelength laser, along with other wavelengths and complementary technology, to address a variety of medical and aesthetic indications. The product family includes several laser console systems and associated single-use disposable hand pieces and accessories.
CoolTouch products are cleared by the U.S. Food and Drug Administration (FDA) and are exclusively made in the United States in Roseville, CA. CoolTouch has an ISO 13485 certified world-class quality system, is GMP qualified and select CoolTouch products bear the CE mark, a conformity distinction awarded by the European Commission.
CoolTouch also developed a 15-watt holmium laser system for the treatment of kidney stones and soft tissue ablation by urologists. It is sold as a private label product by American Medical Systems, a subsidiary of Endo Health Solutions.
CoolTouch and American Medical Systems have entered into an agreement pursuant to which CoolTouch has agreed to develop and manufacture a next-generation holmium laser system for American Medical Systems to sell globally through its urology sales team.
Source: Syneron Medical
E-mail: via web site
Web Site: www.syneron-candela.com
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