Hologic Inc to acquire medical aesthetics company Cynosure Inc for $1.65 billion

News Hour:

Hologic Inc said on Tuesday it would acquire medical aesthetics company Cynosure Inc for $1.65 billion as it looks to capitalize on an increase in medical procedures that are not traditionally reimbursed, reports Reuters.

The medical aesthetics market is growing at a rapid pace as the American population ages and analysts expect the sector to see more deals. Botox maker Allergan Plc agreed to buy Cynosure’s rival Zeltiq Aesthetics Inc for about $2.48 billion on Monday.

Much of aesthetics is not subject to reimbursement risks, making it less cyclical, William Blair analyst Margaret Kaczor told Reuters.

“Larger acquirers can access a fast growing, profitable market that is just in the first quarter of the game.”

The medical aesthetics market exceeds $2 billion globally and is expected to grow at a low-double-digit rate over the next several years, Hologic said.

Shares of Cynosure were up about 28 percent at $65.88 in morning trading, slightly below Hologic’s offer of $66 per share. Hologic’s shares were down about 3.6 percent at $38.57.

Cynosure makes products used in non-invasive body contouring, hair removal, skin revitalization and women’s health and generated 2016 revenue of $433.5 million. The transaction has an enterprise value of $1.44 billion and will be fully funded with cash on hand, Hologic said.

Hologic – a maker of diagnostic products, medical imaging systems, and surgical products – said the deal will immediately add about 3 cents-5 cents per share to its adjusted earnings for the balance of fiscal 2017.

Morgan Stanley & Co LLC is Hologic’s financial adviser, while Wachtell, Lipton, Rosen & Katz is its legal adviser. Leerink Partners LLC is financial adviser to Cynosure, while Wilmer Cutler Pickering Hale and Dorr LLP is its legal adviser.

Shares of rival aesthetics company Syneron Medical Ltd, which also offers products for body contouring, hair and tattoo removal as well as facial treatments, were up 3 percent.

News Hour Correspondent

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments

Translate this News

Join the Facebook Group

Click here to join the Facebook group of News Hour

Popular Posts

Why Japan took a long time to go for country lockdown?
Ukraine battles forest fire in Chernobyl nuclear zone
Honor Blackman, James Bond actress dies at 94
Boris Johnson still in hospital with persistent coronavirus symptoms
Bangladesh PM unveils Tk 72,750 crore package to overcome Covid-19 impact
Corona Identifier app launched in Bangladesh


News of the Month

February 2017
Scroll Up
%d bloggers like this: