Israeli medical laser developers to merge
This article was originally published in Clinica
Two Israeli companies, ESC Medical Systems and Laser Industries, have agreed to merge through an exchange of shares.
Both companies are key developers of laser treatment. The transaction will enhance ESC's leading position in the fast-growing cosmetic medical market, expand its product offerings and broaden the scope of its target markets.
On a pro forma basis, the combined company expects to generate revenues of approximately $185 million in 1997. The merger is expected to immediately add to ESC's earnings. With the pooling of interests, the transaction will value the combined company at about $270 million, based on ESC's share price of $42.
. . . skin resurfacing
The deal merges two companies that claim to have been instrumental in the development of cosmetic and medical lasers.
ESC's pulsed-light-source devices, lasers and other products are used for non-invasive cosmetic medical procedures and other applications in physicians' offices. Laser Industries uses laser-based technologies for skin resurfacing, laser surgery and other applications, in both physicians' offices and hospitals.
Dr Shimon Eckhouse, ESC chairman, president and CEO, said: "The combination of ESC and Laser Industries significantly enhances our position as a leader in the cosmetic and medical market places. With Laser Industries' installed base of approximately 12,000 laser systems and its significant worldwide presence in sales, marketing, distribution and manufacturing, the combined company will have one of the largest salesforces and a stronger global presence."
. . . global presence
Dr Eckhouse added: "This combination is consistent with ESC's growth strategy of expanding our global presence, broadening our line of advanced products, and accelerating our penetration into additional medical laser markets."
The transaction is expected to close at the end of the first quarter of 1998.