Cynosure Acquires Aesthetic Laser Business Of HOYA ConBio
Transaction Further Strengthens Cynosure's Product Platform with Addition of Proprietary Q-Switched Nano-Second Laser Technology; Management to Discuss Transaction in Conference Call at 9:00 a.m. (ET) Today
WESTFORD, Mass., June 28, 2011 /PRNewswire/ -- Building on its reputation as a global technology leader in laser and light-based aesthetic systems, Cynosure, Inc. (NASDAQ: CYNO) today announced that it has acquired the assets of the aesthetic laser business of HOYA ConBio®, a wholly owned subsidiary of Japan-based HOYA Corporation (TSE code: 7741), for $24.5 million in cash. HOYA ConBio is based in Fremont, California. The acquisition expands Cynosure's broad product portfolio with the addition of HOYA ConBio's proprietary PhotoAcoustic energy technology, which uses high-speed energy waves to penetrate the skin in nanoseconds, minimizing the amount of heat in each procedure. HOYA ConBio has an installed base of more than 3,200 aesthetic laser systems worldwide. For the fiscal year ended March 31, 2011, HOYA ConBio generated revenue of $23.9 million from aesthetic applications, approximately 80% of which was derived from outside of the United States. HOYA ConBio's aesthetic laser business has been profitable for the past two years. "We believe that this acquisition will create significant new opportunities for us to grow our market share in popular aesthetic indications such as skin rejuvenation and tattoo removal, while allowing efficiencies that enable Cynosure to enhance its profitability," said Michael Davin, Cynosure's president and chief executive officer. "Excluding any acquisition-related expenses, we expect this transaction to be accretive to earnings in 2012." "With a large global installed base and an outstanding reputation for reliability, HOYA ConBio's proprietary Q-Switched laser technology further broadens our comprehensive technology lineup, complementing our portfolio of Alexandrite, YAG, pulse dye, and intense pulsed light products," Davin said. "We also believe that the acquisition: offers substantial cross-selling and marketing opportunities; creates new distribution channels; provides an opportunity to expand our direct sales in certain overseas markets; and allows us to leverage HOYA ConBio's technology development resources to develop future products that incorporate the aesthetic technologies of the combined company."