Skin aesthetic company Thermage to buy Reliant Technologies for $95M
Thermage Inc. will acquire Reliant Technologies Inc. in a stock and cash transaction valued at approximately $95 million, the companies said Monday.
Hayward-based Thermage (NASDAQ: THRM) focuses on non-invasive skin tightening; Mountain View-based Reliant Technologies is a privately held company that focuses on skin resurfacing through its Fraxel line of products.
The companies said the deal would "combine market leaders in skin tightening and skin resurfacing, the two fastest growing segments of the industry."
Thermage and Reliant generated nearly $137 million in revenue on a combined basis for the 12 months ended March 31.
"The transaction is expected to create cross selling opportunities in the domestic and international markets," the companies said, adding that annual cost savings from the combination are expected to be approximately $14 million.
The boards of both companies have approved the proposed transaction, which is subject to customary closing conditions, including approval by the stockholders of Thermage.
The stockholders of Reliant have already approved the transaction by written consent.
"This proposed combination brings together two companies with premier technologies and market positions in their respective fields and creates a company with significantly more potential than either company can realize on its own," said Eric Stang, president and CEO of Reliant Technologies. "Through this combination, Thermage and Reliant Technologies are leading the way toward industry consolidation and establishing a stronger company capable of continued industry leadership."
Reliant Technologies generated approximately $72.5 million in revenue during the 12 months ended March 31.
surf's up......crikey
