As well as skin care, PhotoMedex specializes in proprietary excimer laser treatments as well as LED light systems and will combine forces with New York-based Radiancy to form a business with an estimated yearly revenue of $132m.
Radiancy develops and manufactures home-use and professional aesthetic and dermatological devices, providing a business portfolio that compliments that of PhotoMedex without there being any competition issues.
Combining professional and consumer markets
Specifically, the deal will combine the PhotoMedex strengths in professional dermatology and the plastic surgery market, with Radiancy’s global reach in the consumer market , presenting considerable synergies for sales and the distribution of a larger portfolio.
The deal will mean that PhotoMedex will own approximately 25 percent of the Radiancy business and will see PhotoMedex buy approximately 846,000 common shares in Radiancy for $174m.
The reverse merger will be between PhotoMedex, Radiancy, which is Delaware-based and a wholly-owned subsidiary of PhotoMedex known as PHMC Merger Sub.
Business combination holds potential
Radiancy had total sales of $96m last year and produces Light Heat Energy and Termicon technologies sold under the no!no! and Radiancy brands through both direct sales channels and major global retailers.
"This is a transformative transaction for PhotoMedex, and the combination of these two companies holds potential for revenue and earnings growth that neither one of us would be able to achieve alone,” said Dennis McGrath, PhotoMedex president and chief executive officer.
“Yet beyond the business synergies, we believe this is an excellent fit of corporate cultures, with a shared commitment to innovation, product quality and meeting the evolving needs of customers."