Syneron Medical Ltd., an aesthetic device company, will acquire New Star Lasers Inc., which conducts business as CoolTouch Inc., for approximately $11 million in cash and earn out based on certain milestones of up to $4 million until end of 2015. New Star Lasers is a developer and manufacturer of laser products for medical professionals.
Shimon Eckhouse, Chief Executive Officer of Syneron, transitioning into active Chairman, says, “The acquisition of CoolTouch significantly enhances Syneron’s product offerings and market opportunity while also improving the recurring revenue profile of our business. We believe CoolTouch will add value to Syneron’s product offerings by expanding our reach into new markets such as the endovascular treatment of varicose veins and minimally-invasive laser assisted lipolysis. In addition, the CoolTouch business model also supports our strategy to increase sales of products with recurring revenue streams. We are very pleased to welcome the CoolTouch team to Syneron and look forward to expanding adoption of their products and technology through our global commercial infrastructure.”
The CoolTouch family of products utilizes New Star Lasers’ 320 nm wavelength laser, along with other wavelengths and complementary technology, to address a variety of medical and aesthetic indications. The product family includes several laser console systems and associated single-use disposable hand pieces and accessories. CoolTouch products are cleared by the U.S. Food and Drug Administration and are made in in Roseville, Calif. CoolTouch has an ISO 13485 certified quality system, is GMP qualified, and select CoolTouch products bear the CE mark, a conformity distinction awarded by the European Commission.
CoolTouch also developed a 15-watt Holmium laser system for the treatment of kidney stones and soft tissue ablation by urologists. It is sold as a private label product by American Medical Systems, a subsidiary of Endo Health Solutions. CoolTouch and American Medical Systems have entered into an agreement pursuant to which CoolTouch has agreed to develop and manufacture a next-generation Holmium laser system for American Medical Systems to sell globally through its urology sales team.
Release Date: February 20, 2014
Source: Syneron Medical