Solta Medical, a provider of medical aesthetics solutions, has entered into a definitive agreement to acquire California-based privately-held Aesthera. Under the terms of the agreement, Solta will acquire Aesthera for $5.25m in common stock and cash, with potential additional base line milestones of $750,000 for a consideration of $6m.
In addition, there are $10m of stretch milestones which would be paid to Aesthera shareholders if Aesthera achieves revenue ranging from $14 to $21m in the twelve months beginning April 1, 2010. The proposed transaction becomes increasingly accretive to Solta Medical shareholders as Aesthera achieves the higher milestone revenue and payments.
Aesthera’s light-based treatment systems, Isolaz and Isolaz Pro platforms, are based on proprietary Photopneumatic technology and are the laser or light based devices with FDA marketing clearance for the treatment of inflammatory acne, comedonal acne, pustular acne and mild-to-moderate inflammatory acne.
Isolaz treatments have an immediate visible impact on acne 24 to 48 hour post first treatment and are painless. Facial treatments take as little as 10 minutes, require no anesthetics or numbing creams, and provide additional cosmetic benefits such as smoother appearing skin.
Stephen Fanning, chairman of the board, president and CEO at Solta Medical, said: “The acquisition will leverage our current call point, and provides compelling opportunities to leverage our marketing resources targeting both physicians and consumers. Our goal is to extend the cross-selling success that we demonstrated during the past year with the Thermage and Fraxel brands to the Isolaz brand.”
Alon Maor, president and CEO of Aesthera Corporation, said: “We are excited about becoming part of Solta Medical. Over the past several years, our team has built Isolaz into one of the recognized and well respected names in the medical community for difficult to treat acne, which affects millions of people. Patients unable to find successful treatments for their acne have found solutions from dermatologists using our technology. Now, we believe that under the Solta Medical umbrella, Isolaz can achieve its full market potential, both in the US and abroad.”