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.
"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.