March 18 (Bloomberg) -- Cynosure Inc., which makes lasers for medical and cosmetic treatments, agreed to acquire competitor Palomar Medical Technologies Inc. for $294 million in cash and shares.
The deal will give investors of Burlington, Massachusetts-based Palomar $13.65 a share, half in cash and half in stock of Westford, Massachusetts-based Cynosure, the companies said in a statement today. That represents an 8.2 percent premium to the March 15 closing price of Palomar shares.
Cynosure will have more than 20,000 cosmetic laser systems installed in 100 countries after the acquisition is complete, the companies said. Often located in doctors’ offices, the devices are used for hair and tattoo removal, scar treatment, and laser liposuction, according to the companies’ websites.
“Combining with Palomar complements our product portfolio and customer base, adding new product and service revenues, strengthening our global distribution network, creating new cross-selling opportunities and enhancing our intellectual property position,” Cynosure Chief Executive Officer Michael Davin said in the statement.
The acquisition should be completed in the third quarter and lead to $8 million to $10 million in cost savings, the company said.
Cynosure fell 4.8 percent to $27.10 at the close in New York. Palomar shares gained 4.4 percent to $13.17.
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