Hologic picks up medical aesthetics player Cynosure in $1.6B+ deal

Hologic is well-known for its breast imaging devices. (Hologic)

Diagnostics player Hologic is diving into medical aesthetics with an acquisition of Cynosure worth approximately $1.65 billion.

The all-cash transaction is expected to close in March or April. It will be funded with cash on hand, which includes proceeds from the $1.85 billion divestiture of its blood-screening business to longtime partner Grifols.

The deal will serve as Hologic’s entry into the medical aesthetics space—which includes noninvasive body-contouring devices—while also expanding Cynosure’s market reach, the companies said in a statement.


Like this story? Subscribe to FierceBiotech!

Biopharma is a fast-growing world where big ideas come along every day. Our subscribers rely on FierceBiotech as their must-read source for the latest news, analysis and data in the world of biotech and pharma R&D. Sign up today to get biotech news and updates delivered to your inbox and read on the go.

"We had identified medical aesthetics as an attractive and complementary growth opportunity through our strategic planning process, and are pleased to have agreed to acquire Cynosure, the best-in-class company in the space,” said Hologic CEO Steve MacMillan in the statement.

Hologic’s announcement comes a day after Allergan announced it would pick up Zeltiq, which markets the fat-freezing CoolSculpting system, to boost its aesthetics offerings.

In addition to body-contouring systems, Cynosure markets devices for hair removal, tattoo removal and the treatment of surgical and acne scars. The company posted $433.5 million in revenues for 2016, a 28% leap from its sales haul the previous year.

"Strategically, this deal enables Cynosure to further capitalize on growth opportunities in the core and non-core aesthetic market, rapidly strengthens our position in women's health—where Hologic has a leading commercial presence—and accelerates our R&D initiatives," said Cynosure CEO Michael Davin in the statement.

Suggested Articles

Weeks after receiving FDA approval for its in-office eardrum tube device, Tusker Medical has been picked up by Smith & Nephew for an undisclosed sum.

As public fascination with at-home DNA tests begins to wane, 23andMe announced that it will lay off about 100 of its staff, according to CNBC.

The Rady Children’s Institute for Genomic Medicine tapped Deloitte to help develop a network of flying drones to deliver genetic testing specimens.