Syneron Medical has signed a definitive agreement to acquire Ultrashape Ltd, developer and manufacturer of the UltraShape Contour noninvasive body contouring device that uses pulsed (non-thermal) focused ultrasound to destroy fat cells. Under terms of the agreement, Syneron will acquire 100% of the outstanding shares of Ultrashape Ltd. from Ultrashape Medical Ltd. for $12 million in cash.
“Ultrashape has developed a clinically validated, highly effective, customer- and patient-friendly product line focused on the noninvasive destruction of fat cells. The acquisition provides Syneron immediate entry into this large and attractive global market for fat disruptive body contouring and provides the opportunity to leverage our worldwide sales infrastructure and VelaShape installed-base to drive growth in the Ultrashape business” said Louis P. Scafuri, CEO of Syneron Medical, “The combination of Ultrashape and Syneron's body contouring product pipeline will accelerate our leadership in this key growth market. It is also synergistic with our existing corporate strategy to increase our mix of higher margin product sales that include a recurring revenue component, while also providing our customers with an attractive cost of acquisition and path to profitability.”
The UltraShape Contour I V3--the latest generation Contour device from Ultrashape--is indicated for body sculpting and circumferential reduction of the lower and upper stomach, waist and thighs. It is intended for use on patients with a body mass index (BMI) of between 18.5 and 30 (normal to overweight patients). Patients experience an average circumference reduction of 4cm. Results are visible within 7 to 10 days. The procedure does not require hospitalization or anesthesia, and there is no post-procedure downtime or thermal injury to the tissue.
The Contour I V3 is approved in Europe. Ultrashape has submitted for regulatory approval in China and, in the United States, the company has announced that it has a clear and defined path for Food and Drug Administration (FDA) clearance following a pivotal clinical study.
“We are delighted to join the Syneron family,” said Alon Maor, chairman of the board of Ultrashape Medical. “We believe its global sales and distribution reach will help millions of patients worldwide benefit from the unique Ultrashape procedure. Moreover, based on our in depth patent portfolio in the fat disruptive ultrasound field, we believe future novel developments will drive additional growth.”