Solta Medical, a provider of medical aesthetics devices, has signed a definitive agreement for the purchase of Colorado-based Sound Surgical Technologies for $25.5m in common stock and $5m in cash.
Sound Surgical's commercial products include FDA-approved VASER Lipo system, which uses ultrasound waves to selectively emulsify fatty tissue and allows clinicians to perform fat extraction with minimal blood loss, pain and bruising, claims Sound Surgical.
Solta Medical chairman, president and CEO Stephen Fanning said the acquisition provides the company with a complementary, diversified product portfolio targeting the over $500m body contouring market segment.
"In combination with our rapidly growing Liposonix product line, the acquisition presents significant cross-selling opportunities to plastic surgeons and dermatologists, as well as expanded international sales potential," Fanning added.
In addition to the purchase price, Solta will pay $9.5m to Sound Surgical's shareholders based on revenue generated from Sound Surgical products in 2013.
The proposed transaction, which is expected to be closed during the first quarter of 2013, becomes increasingly accretive to Solta Medical's quarterly earnings within twelve months.
Sound Surgical Technologies CEO Daniel Goldberger said, "We believe that by combining our sales organization with Solta's, we will enhance market penetration of our highly differentiated technologies with plastic surgeons and dermatologists."
