WESTFORD, Mass., June 28, 2011 /PRNewswire/ -- Building on its
reputation as a global technology leader in laser and light-based
aesthetic systems, Cynosure, Inc. (NASDAQ: CYNO) today announced
that it has acquired the assets of the aesthetic laser business of
HOYA ConBio®, a wholly owned subsidiary of Japan-based HOYA Corporation (TSE code: 7741),
for $24.5 million in cash. HOYA
ConBio is based in Fremont,
California.
The acquisition expands Cynosure's broad product portfolio with
the addition of HOYA ConBio's proprietary PhotoAcoustic energy
technology, which uses high-speed energy waves to penetrate the
skin in nanoseconds, minimizing the amount of heat in each
procedure. HOYA ConBio has an installed base of more than
3,200 aesthetic laser systems worldwide. For the fiscal year
ended March 31, 2011, HOYA ConBio
generated revenue of $23.9 million
from aesthetic applications, approximately 80% of which was derived
from outside of the United States.
HOYA ConBio's aesthetic laser business has been profitable
for the past two years.
"We believe that this acquisition will create significant new
opportunities for us to grow our market share in popular aesthetic
indications such as skin rejuvenation and tattoo removal, while
allowing efficiencies that enable Cynosure to enhance its
profitability," said Michael Davin,
Cynosure's president and chief executive officer. "Excluding
any acquisition-related expenses, we expect this transaction to be
accretive to earnings in 2012."
"With a large global installed base and an outstanding
reputation for reliability, HOYA ConBio's proprietary Q-Switched
laser technology further broadens our comprehensive technology
lineup, complementing our portfolio of Alexandrite, YAG, pulse dye,
and intense pulsed light products," Davin said. "We also believe
that the acquisition: offers substantial cross-selling and
marketing opportunities; creates new distribution channels;
provides an opportunity to expand our direct sales in certain
overseas markets; and allows us to leverage HOYA ConBio's
technology development resources to develop future products that
incorporate the aesthetic technologies of the combined
company."
HOYA ConBio's Q-Switched Nd:YAG technology is designed to treat
a broad range of high-volume applications, including skin
rejuvenation, skin toning, multi-color tattoo removal, wrinkle and
acne scar reduction, pigmented lesions and vascular lesions.
Under the terms of the transaction, Cynosure acquired all of the
assets, including the intellectual property, and assumed the trade
payables and warranty obligations of HOYA ConBio's aesthetic laser
business. The acquisition encompasses both the U.S.-based
aesthetic laser business, headquartered in Fremont, California, which manages HOYA
ConBio's North America business
and independent distributors in the Asia
Pacific region, and HOYA ConBio's European aesthetic laser
business. Based in Courtaboeuf Cedex, France, the European business oversees
independent distributors in Europe, Africa and the Middle East. HOYA ConBio's aesthetic
laser business employs approximately 50 people, all of whom have
been offered positions with Cynosure.
"HOYA ConBio's aesthetic laser products are supported by a
dynamic organization, and we are delighted to welcome these
talented employees to Cynosure," Davin said. "We believe that
this complementary acquisition will enable us to continue to
strengthen our international presence, increase critical mass and
leverage the brand equity and relationships established by HOYA
ConBio over two decades in the aesthetic laser industry."
As part of a transition services agreement, Cynosure will assist
in the manufacture of components, parts and accessories of HOYA
ConBio's dental laser business for six months. Following that
period, the manufacturing responsibility will transfer to HOYA
Corporation.
The acquired aesthetic laser assets include:
- MedLite® C series: A Q-Switched Nd:YAG dual-wavelength
system designed to be easy-to-use, with minimal downtime or patient
discomfort, across a range of applications, including facial
wrinkles, acne scars overall skin rejuvenation, multi-color
tattoos, sun spots, brown spots and uneven skin tone. The MedLite's
PhotoAcoustic effect combines high power and nanosecond pulse
widths to deliver peak energy throughout the layers of the
epidermis faster than the normal relaxation time of the
tissue.
- RevLite®: Built on the same platform as the MedLite C6,
RevLite is the next generation of Q-switched laser technology -- a
multi-purpose, multi-wavelength aesthetic laser that offers up to
60 percent more power than the MedLite C6.
- DermaSculpt: An Erbium:YAG laser that delivers the 2940
wavelength in three treatment modes, enabling practitioners to:
improve superficial irregularities in tone, texture and pigment;
stimulate collagen remodeling; and target individual lesions and
other irregularities.
- V-Raser®: a compact, diode laser designed to treat
vascular lesions, including facial telangiectasias. The 980 nm
wavelength delivers safe, effective treatment of common high-flow
blood vessels, including red and blue vessels, especially on the
face.
Leerink Swann LLC acted as financial advisor to Cynosure.
Wilmer Cutler Pickering Hale and
Dorr LLP acted as legal advisor.
Acquisition Conference Call
Cynosure will host a conference call for investors and analysts
at 9:00 a.m. ET today to discuss the
acquisition. Those who wish to listen to the conference call
webcast should visit the "Investor Relations" section of the
company's website at www.cynosure.com. The live call can also be
accessed by dialing (877) 407-5790 or (201) 689-8328. If you are
unable to listen to the live call, the webcast will be archived on
the company's website.
About Cynosure, Inc.
Cynosure, Inc. develops and markets aesthetic treatment systems
that are used by physicians and other practitioners to perform
non-invasive and minimally invasive procedures to remove hair,
treat vascular and pigmented lesions, rejuvenate the skin, liquefy
and remove unwanted fat through laser lipolysis and reduce the
appearance of cellulite. Cynosure's products include a broad
range of laser and other light-based energy sources, including
Alexandrite, pulse dye, Q-switched, Nd:YAG and diode lasers, as
well as intense pulsed light. Cynosure was founded in 1991.
For corporate or product information, contact Cynosure at
800-886-2966, or visit www.cynosure.com.
Forward-Looking Statements
Any statements in this press release about future expectations,
plans and prospects for Cynosure, Inc., including those related to
the market potential associated with the assets that Cynosure has
acquired and Cynosure's ability to integrate those assets into its
business, as well as other statements containing the words
"believes," "anticipates," "plans," "expects," "will" and similar
expressions, constitute forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by
such forward-looking statements as a result of various important
factors, including the global economy and lending environment and
their effects on the aesthetic laser industry, Cynosure's reliance
on sole source suppliers, the inability to accurately predict the
timing or outcome of regulatory decisions, changes in consumer
preferences, competition in the aesthetic laser industry, and
economic, market, technological and other factors discussed in
Cynosure's most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q, which are filed with the Securities and
Exchange Commission. In addition, the forward-looking
statements included in this press release represent Cynosure's
views as of the date of this press release. Cynosure anticipates
that subsequent events and developments will cause its views to
change. However, while Cynosure may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Cynosure's views as of any date subsequent to the date
of this press release.
Contact:
Scott Solomon
Vice President
Sharon Merrill Associates, Inc.
Phone: (617) 542-5300
cyno@investorrelations.com
SOURCE Cynosure, Inc.
