Solta Medical has entered into a stock purchase agreement with Medicis Pharmaceutical Corporation to acquire all outstanding shares of Medicis Technologies (formerly LipoSonix, Inc.), a subsidiary of Medicis Pharmaceutical. Under the terms of the agreement, Solta will pay Medicis $15 million and make a one-time $20 million payment for the device’s recent United States Food and Drug Administration (FDA) approval upon closing. In addition, the company agrees to make certain future contingent payments based upon, among other things, the achievement of specified year-to-year increases in the worldwide commercial performance of the LIPOSONIX noninvasive, ultrasound-based fat reduction technologies.
"We are pleased to announce this transaction with Solta," said Jonah Shacknai, chairman and CEO of Medicis. "We believe Solta, with its specialization in capital equipment among other things, is well-suited to commercialize the novel LIPOSONIX technologies worldwide. Medicis continues to believe the worldwide market for fat ablation is attractive and lucrative.”
"The addition of LIPOSONIX to the Solta Medical family illustrates our strategy to broaden our portfolio of superior aesthetics solutions,” said Stephen J. Fanning, chairman of the board, president and CEO of Solta. “As the current industry leader in skin resurfacing and tightening, Solta will expand into the large and growing market for the non-invasive destruction of fat.”