Laser companies Cynosure, Palomar to merge

Cynosure and Palomar Medical Technologies have signed a definitive agreement in which Cynosure will acquire Palomar in a cash and stock transaction valued at approximately $294 million.

The transaction will create “one of the world’s premier aesthetic laser and light-based companies,” according to a press release from Cynosure.

The two Massachusetts-based companies have a combined installed base of more than 20,000 aesthetic laser systems worldwide, distributing products to more than 100 countries. The companies’ combined revenue in 2012 was $234 million.

Cynosure’s aesthetic treatment systems include Alexandrite, pulse dye, Q-switched, Nd:YAG and diode lasers, plus intense pulsed light, which are used to perform noninvasive and minimally invasive procedures, including hair and multicolored tattoo removal and vascular and pigmented lesion treatment.

Palomar products include cosmetic lasers and intense pulsed light systems. In June 2009, Palomar became the first company to receive a 510(k) over-the-counter clearance from the FDA for a patented, home-use, laser device for treating periorbital wrinkles.

“Beyond our strategic rationale for acquiring Palomar, we also are excited about the benefits of bringing together two organizations built on a commitment to meaningful innovation,” Michael Davin, Cynosure’s chairman and CEO, said in the release. “This commitment is also reflected in proprietary technology that enables physicians to ensure patient safety and comfort through advances in intelligent energy delivery, skin cooling and temperature control.”

The transaction is expected to close in the third quarter of 2013 and is subject to Cynosure and Palomar shareholder approval and regulatory approvals. Upon completion, Davin will serve as chairman and CEO of the combined company, and Joseph Caruso, chairman, president and CEO of Palomar, will serve as president.