Wednesday, March 20, 2013

Cynosure: Price Tag Of Palomar Deal A Bit Steep

Shares of Cynosure (CYNO) have taken a beating. The developer and marketer of aesthetic treatment systems which are used to perform non-invasive procedures announced that it has agreed to acquire Palomar Medical Technologies (PMTI). Shares ended the day with losses of 5%, while shares of Palomar rose more than 4%.

The Deal

Cynosure announced that it has agreed to acquire Palomar Medical Technologies in an attempt to create a world-leading aesthetic laser and light-based company. Cynosure will acquire the company for a total of $284 million in cash and stock.

Shareholders in Palomar stand to receive $6.825 worth of Cynosure's common stock and a similar amount in cash. The deal values the company at approximately $294 million. The deal represents an 8% premium compared to Friday's closing price.

Read the entire article on Seekingalpha by clicking the following link

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