Syneron buying Candela in $65 million stock deal

Syneron Medical buying rival aesthetic medical device maker Candela in $65 million stock deal

• On 6:48 am EDT, Wednesday September 9, 2009

NEW YORK (AP) -- Skin treatment and aesthetic medical device maker Syneron Medical Ltd. will buy rival Candela Corp. for about $65 million in a stock deal, the companies said Wednesday.

Under the deal, Candela shareholders will receive 0.2911 shares of Syneron for each Candela share held. Overall, Syneron will issue 6.7 million shares, at about $2.84 per share, representing a 51 percent premium to Candela's closing price of $1.88 Tuesday.

The deal is expected to close by the end of the year, with Syneron shareholders owning 80 percent of the combined company.

Israel-based Syneron makes a range of radiofrequency and laser devices used for hair removal, skin treatment, and dental procedures. Wayland, Mass.-based Candela also makes laser devices for skin treatments and hair removal.

The combined company will have annual proforma revenue of more than $180 million, based on the most recent quarter, with about 62 percent of revenue coming from international sales, Syneron and Candela said in a statement.

Syneron CEO Louis P. Scafuri will remain CEO of the combined company.

Leerink Swann LLC is the financial adviser to Syneron, with Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co. and Morrison & Foerster LLP serving as legal counsel. Houlihan Lokey is acting as financial adviser to Candela, and Goodwin Procter LLP is its legal counsel.

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