Hologic, Inc (Nasdaq: HOLX) may be typically best known for its breast imaging devices and diagnostic products but this week they are making waves with the announcement to sign an agreement with leading medical aesthetics systems company, Cynosure, Inc (Nasdaq: CYNO). The agreement will see Hologic acquiring all outstanding Cynosure shares for $66.00 per share, in cash; an approximate value of $1.65 billion, with an enterprise value of $1.44 billion net of cash. Hologic said it plans to use some of the proceeds of its recent $1.85 billion sale of its San Diego-based blood screening business to capitalize on this new venture with Cynosure.
The market for medical aesthetics has been a fast-growing one which has catapulted many leading companies into an actionable place to possibly takeover smaller entities. Consider, for example, how Allergan PLC (NYSE: AGN)–who makes Botox—has recently acquired the California-based Zeltiq Aesthetics (Nasdaq: ZLTQ) for $2.48 billion. That’s a premium of over 14 percent to Zeltiq’s closing price, Friday.
Indeed, Hologic CEO Steven MacMillan said, on Tuesday, that the company had readily identified medical aesthetics as “an attractive and complementary growth opportunity.”
With that in mind, then, he comments, “Together, we can strengthen our shared focus on innovation, market-leading products with demonstrated clinical benefits, and strong customer relationships.”
This transaction has already been approved unanimously by the boards of directors at both companies and will serve to extend Hologic’s scientific and commercial capabilities into one of the fastest-growing segments within the medical technology industry while also expanding Cynosure’s customer reach and potential market.
Also the company president and chairman, MacMillan goes on to say, “Acquiring Cynosure will accelerate our transformation into a higher-growth company by leveraging our core women’s health expertise and OB/GYN channel leadership into an adjacent, cash-pay segment that is expanding at a low double-digit rate. We had identified medical aesthetics as an attractive and complementary growth opportunity through our strategic planning process, and are pleased to have agreed to acquire Cynosure, the best-in-class company in the space. Together, we can strengthen our shared focus on innovation, market-leading products with demonstrated clinical benefits, and strong customer relationships. “