Laser company Palomar merges with Cynosure

Laser device makers Cynosure and Palomar Medical are merging in a transaction valued at $294 million.

The companies combined have an installed base of more than 20,000 aesthetic laser and light systems globally, and had a combined revenue in calendar year 2012 of $234 million, according to a news release.

The deal will allow Palomar’s shareholders to receive $6.825 per share in cash and $6.825 per share in Cynosure common stock. Cynosure is expected to issue about 5.2 million shares in the transaction. The acquisition price of $13.65 per share represents a premium of about 23 percent above Palomar’s average closing price, the company reported.

Boards of directors for both companies unanimously approved the deal; it is expected to close in the third quarter of 2013. When the transaction closes, Cynosure shareholders will own about 77 percent of the combined company, and Palomar shareholders will own about 23 percent.

“Combining with Palomar complements our product portfolio and customer base, adding new product and services revenues, strengthening our global distribution network, creating new cross-selling opportunities and enhancing our intellectual property position with the addition of more than 40 patents,” Cynosure CEO and chairman Michael Davin stated.