Diagnostic products developer Hologic has signed a definitive agreement to acquire all outstanding shares of medical aesthetics systems and technologies provider Cynosure for $1.65bn.
The transaction is expected to expand Hologic's scientific and commercial capabilities into the aesthetics segment of medical technology, while expanding Cynosure's customer reach and market.
Cynosure's portfolio includes 20 products across non-invasive body contouring, hair removal, skin revitalisation and women's health categories, which are marketed through direct sales and distributors in more than 130 countries.
Hologic chairman, president and chief executive officer Steve MacMillan said: "Acquiring Cynosure will accelerate our transformation into a higher-growth company by leveraging our core women's health expertise and OB/GYN channel leadership into an adjacent, cash-pay segment that is expanding at a low double-digit rate.
"Together, we can strengthen our shared focus on innovation, market-leading products with demonstrated clinical benefits, and strong customer relationships."
The non-invasive fat body contouring and women's health products by Cynosure are complementary to Hologic's existing products in this sector, enabling it to further focus on minimal and non-invasive surgical procedures.
Cynosure chairman, president and chief executive officer Michael Davin said: "We are thrilled at the prospect of becoming part of Hologic through a transaction that provides excellent value for all of our stakeholders.
"Strategically, this deal enables Cynosure to further capitalise on growth opportunities in the core and non-core aesthetic market, rapidly strengthens our position in women's health, where Hologic has a leading commercial presence, and accelerates our R&D initiatives."
Subject to customary terms and closing conditions, the transaction is expected to be completed in late March or April this year.