Merz and Ulthera have entered into a definitive merger agreement pursuant to which Merz will acquire Ulthera, a global medical device company focused on developing and commercializing technologies for aesthetic and medical applications using its therapeutic ultrasound platform technology.

Valued at up to $600m in upfront cash and milestone payments, the acquisition is the largest in Merz’s history.

Merz Pharma Group CEO Philip Burchard said that this acquisition represents an important strategic milestone for Merz.

"We have a vision to be the most innovative company in aesthetics, and expanding into the rapidly growing field of energy devices will position us for long-term success in this area. The addition of Ulthera’s energy device technology complements and expands our global presence in the aesthetics space," Burchard added.

Merz and Ulthera have a shared mission: to bring innovations to market that meet the needs of physicians and improve the well-being of patients. This shared long-term vision provides a solid foundation for the combined company.

Ulthera CEO Matt Likens said that joining with a like-minded, growing global healthcare company is a major milestone in the life of the company.

"Through our collaboration with Merz, we will be able to introduce the Ulthera® System to new customers and markets around the world," Likens added.

Merz Pharma Group Corporate & Business Development head Hans-Joerg Bergler said: "Building on this important new partnership, Merz will further continue to seek innovative M&A and licensing opportunities on a global scale "said.

The transaction has been approved by the boards of both companies and is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is expected to close in the third quarter of 2014.