7/09/08
(Reuters) – Aesthetic medical device maker Thermage Inc (THRM.O: Quote, Profile, Research, Stock Buzz) said it would buy privately held Reliant Technologies Inc, a provider of cosmetic laser skin treatment, for about $95 million in cash and stock, sending its shares up as much as 10 percent.
The Hayward, California-based company said it expects the deal to add to its 2009 earnings and save $14 million annually. Analysts expect the company to earn 4 cents a share for 2009.
According to the deal, Thermage will pay $25 million in cash and 23.6 million of its shares to Reliant.
The company, which uses monopolar radio frequency in its procedures, will assume $7.0 million in debt from Reliant Technologies and provide $5 million as bridge financing.
Thermage said it expects to record various charges related to the deal in the fourth quarter, which is when the deal is expected to close.
The company also expects second quarter revenue to be between $17.7 million and $17.9 million.
Thermage shares were up at $2.90 in morning trade on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Bernard Orr)
