Cutera Wraps Up IRIDEX Buy - Analyst Blog
February 06 2012 - 10:00AM
Zacks
Medical devices maker
Cutera Inc. (CUTR) has closed its recently
announced acquisition of the specific aesthetic laser assets of
California-based laser systems and delivery devices maker
IRIDEX Corporation (IRIX) for roughly $5.1
million. The company struck a deal to buy these assets in January
2012. Cutera financed 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 allows Cutera to bolster
its foothold in the vascular aesthetic market.
The acquisition adds IRIDEX’s
portable VariLite dual wavelength system (a solid state laser for
treating vascular, pigmentation and cutaneous lesions) 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 asset purchase deal,
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, in January 2012, 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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