Cutera Buys IRIDEX's Aesthetic Biz - Analyst Blog
January 09 2012 - 7:00AM
Zacks
Medical devices maker
Cutera Inc (CUTR) recently cut an asset purchase
deal with California-based laser systems and delivery devices maker
IRIDEX Corporation (IRIX). Under the deal, Cutera
has agreed to acquire specific aesthetic laser assets of IRIDEX for
roughly $5.1 million.
The transaction, which has been
cleared by the Boards of both companies, is expected to complete in
early 2012. Cutera expects to finance the deal using its available
cash resources.
Both Cutera and IRIDEX currently
serves the roughly $1 billion worldwide aesthetic market. The
acquisition of IRIDEX’s aesthetic assets will bolster Cutera’s
foothold in the vascular aesthetic market.
The acquisition adds IRIDEX’s
portable VariLite dual wavelength system to Cutera’s vascular laser
product range (includes the Excel V laser), enabling the company to
offer physicians a comprehensive suite of solutions for
treating a
broad spectrum of vascular aesthetic indications.
Under the pact, IRIDEX has agreed
to provide Cutera with transitional product and service support.
The divestiture of its aesthetic laser assets to Cutera will allow
the company to refocus on the core ophthalmology opportunity, which
is critical for its future growth.
Cutera develops and markets laser
aesthetics systems for physicians and qualified practitioners
globally and offers its products under three platforms, such as,
Solera, Xeo and CoolGlide. The company markets its products
through a
direct sales force and distributors. Cutera competes with
Cynosure Inc. (CYNO), Palomar Medical
Technologies (PMTI) and Syneron Medical
Ltd. (ELOS) among others.
Cutera recently announced
fourth-quarter 2011 preliminary revenues of roughly $18 million.
The company noted that it has maintained double-digit
sales growth
for the third consecutive quarter. Cutera expects to unveil
full results for the quarter on February 13.
CUTERA INC (CUTR): Free Stock Analysis Report
CYNOSURE INC-A (CYNO): Free Stock Analysis Report
SYNERON MED LTD (ELOS): Free Stock Analysis Report
IRIDEX CORP (IRIX): Free Stock Analysis Report
PALOMAR MED TEC (PMTI): Free Stock Analysis Report
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