Syneron Medical Ltd and Candela Corp — two well-known vendors in the aesthetic medicine space — Tuesday announced the successful closing of their merger. The combined company will retain the Syneron name.
The closing of the merger follows the special meeting held on January 5, 2010 where Candela shareholders voted in favor of the proposed merger agreement, which was reported in September 2009.
"The combination of Candela and Syneron creates the largest aesthetic medical device company, with an unparalleled global distribution footprint and a balanced mix of core and non-core physician customers that vastly enhances our competitive position," says Lou Scafuri, Chief Executive Officer of Syneron. We believe there is tremendous opportunity to drive long-term growth and market leadership over the next several years."
Also announced: Gerard E. Puorro will enter the combined company as Chief Executive Officer. Other key executives from Candela have joined the management team, as well. The first order of the day, says Fabian Tenenbaum, Syneron’s Chief Financial Officer, will be to reduce expenses. In addition, Puorro says the combined company has "no debt and a robust cash position."
Under the terms of the merger agreement, Candela shareholders will receive 0.2911 ordinary shares of Syneron for each share of Candela common stock they own. Syneron will issue approximately 6.7 million shares to acquire Candela. Upon completion of the transaction, Syneron shareholders will own approximately 80% of the combined company and Candela shareholders will own approximately 20%.
Syneron will maintain its corporate headquarters in Israel and North American office in Irvine, CA. Candela will continue to operate as a wholly-owned subsidiary of Syneron and maintain its offices in Wayland, MA. Candela has applied to delist its shares from NASDAQ.