Teva VP Ika Abravanel resigns
Chairman Shimon Eckhouse: Start-ups can operate faster than a company like us. Syneron is a young company, but they are a lot younger than we are.
Aesthetic laser device developer Syneron Medical Ltd. (Nasdaq: ELOS) has acquired privately-held Pharos Life Corporation, a manufacturer of home-use light therapy for aesthetic procedures, for about $15.8 million. The figure consists of $2.5 million in net debt that Syneron will assume, plus up to $13.25 million in milestone payments in 2013.
"We will continue to invest in start-ups. Start-ups can operate faster than a company like us. Syneron is a young company, but they are a lot younger than we are," Syneron founder and chairman Dr. Shimon Eckhouse told "Globes" two months ago.
Syneron has $212.4 million in cash, so there will be no problem financing the acquisition. Phasor Life markets its products directly to consumers through premium retailers under the Tända brand name. Products include skincare and wellness solutions for both the home-use and professional markets.
Pharos will continue operating as a wholly owned subsidiary of Syneron and the Tända business will be integrated into Syneron's consumer home-use initiatives.
The Pharos Life acquisition points to two strategies that Syneron is pursuing since the credit crunch. One is strengthening its presence in the home-use devices market, as opposed to its products for doctors, clinics, and spas. Syneron first entered the home-use market through a collaboration with Procter & Gamble (NYSE: PG), but little has come of it.
Syneron's second strategy is investing in other companies' technologies, rather than relying solely on its R&D department. In this way, the company hopes to increase its basket of products. With its large cash reserves and the large number of companies in the industry, Syeneron has little problem in making acquisitions of technologies and companies.
Pharos Life was founded seven years ago. Given the price tag for the company, it apparently has only a few million dollars in revenue.
Syneron's share price rose 2.4% yesterday to $10.60, giving a market cap of $365 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010
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