Solta Medical has acquired Sound Surgical Technologies, a privately held company and developer of the VASER ultrasound-based liposuction technology. Solta acquired the company for $25.5 million in Solta common stock and $5 million in cash. In addition, Sound Surgical unit holders are entitled to receive up to $9.5 million of contingent payments that would be paid in Solta common stock based on revenue from Sound Surgical products in 2013. The proposed transaction becomes increasingly accretive to Solta Medical as Sound Surgical achieves the higher end of the revenue range. Approximately three-quarters of Sound Surgical unit holders have entered into staggered lock-up agreements ranging up to 270 days. Additionally, David Holthe, current chairman of the management committee of Sound Surgical, will join the Solta Board of Directors. The transaction is expected to be accretive within 12 months.
“With this acquisition, we have added another strong, complementary product to our broad portfolio of leading aesthetic brands and we have expanded our market opportunity,” said Stephen J. Fanning, chairman, president and CEO of Solta Medical. “Sound Surgical's VASER product lines and other technologies utilizing low frequency ultrasound are innovative additions to our Liposonix and Thermage treatments, creating significant cross-selling opportunities with Sound Surgical's plastic surgeon base and our core customer base of plastic surgeons and dermatologists. Sound Surgical generated strong revenue and EBITDA in 2012, and we anticipate the acquisition will contribute to our bottom-line within 12 months.”