Apax confirms Syneron acquisition for $397m

Shimon Eckhouse Photo: Einat Levron

The acquisition of the Israeli esthetic medical company is at a 15% premium on the average closing price in the first quarter.

Israeli esthetic medical products company Syneron Medical Ltd. (Nasdaq: ELOS) has confirmed that it is being acquired by private equity advisory firm Apax Partners. Apax will acquire all of the outstanding shares of Syneron for $11 per share in cash in a transaction valued at $397 million. The per share acquisition price represents a 15% premium on Syneron Candela's 90-day volume-weighted average closing price through March 31 2017.

Syneron Candela cofounder and chairman Dr. Shimon Eckhouse said, "This acquisition is a strong recognition of Syneron Candela's leadership in the aesthetic medical device market, its leading world-class technology and unique global footprint. These exceptional assets are a result of the many years of hard work of our skillful and dedicated employees all over the world. We are confident that Apax will add significant value and expertise as Syneron Candela executes on its growth strategy while delivering innovative technologies to our customers and patients. I also believe that this transaction represents a positive outcome for our shareholders."

Apax Partners partner and co-head of healthcare Steven Dyson said, "We have identified the medical aesthetics market as a highly attractive investment area given its long-term growth prospects. Syneron Candela is very well positioned to capture this opportunity, with its highly diversified geographic footprint, broad and market-leading products portfolio, exceptional R&D capabilities and cutting-edge technology. We are looking forward to partnering with the Syneron Candela team to continue its strong growth trajectory, and to seeing the even greater benefits it can deliver for customers and patients."

The transaction is subject to customary closing conditions, including Syneron Candela shareholder approval and the receipt of certain regulatory approvals. The Syneron Candela Board of Directors has unanimously approved the transaction. Subject to standard fiduciary obligations, Dr. Shimon Eckhouse, who owns 7.4% of the company, has entered into a customary voting agreement pursuant to which he has agreed to vote all of his shares in favor of the transaction. There are no financing conditions associated with the transaction. Major Israeli institutional shareholders include Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) Menorah Mivtachim Holdings Ltd. (TASE: MORA) and Yelin Lapidot.

Barclays is acting as exclusive financial advisor to Syneron Candela. Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co. and Morrison & Foerster LLP are serving as legal advisors. J.P. Morgan is serving as financial advisor to Apax Partners and Simpson Thacher & Bartlett LLP and Meitar Liquornik Geva Leshem Tal are serving as legal advisors.

Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Shimon Eckhouse Photo: Einat Levron
Shimon Eckhouse Photo: Einat Levron
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