Solta Medical to buy US-based surgical body shaping devices provider

30 January 2013 (Last Updated January 30th, 2013 18:30)

California-based medical aesthetics company Solta Medical has announced that it will purchase Colorado-based Sound Surgical Technologies for $25.5m in common stock and $5m in cash.

California-based medical aesthetics company Solta Medical has announced that it will purchase Colorado-based Sound Surgical Technologies for $25.5m in common stock and $5m in cash.

Sound Surgical's commercial products include the VASER Lipo system, which uses ultrasound waves to selectively emulsify fatty tissue prior to extraction from the body, mimising blood loss, pain and bruising.

Solta Medical chairman, president and CEO Stephen Fanning said the acquisition provides the company with a complementary, diversified product portfolio targeting the body contouring market segment, which is worth over $500m.

"In combination with our rapidly growing Liposonix product line, the acquisition presents significant cross-selling opportunities to plastic surgeons and dermatologists, as well as expanded international sales potential," Fanning said.

"Sound Surgical's commercial products include the VASER Lipo system, which uses ultrasound waves to selectively emulsify fatty tissue prior to extraction from the body, mimising blood loss, pain and bruising."

In addition to the purchase price, Solta will pay $9.5m to Sound Surgical's shareholders based on revenue generated from Sound Surgical products in 2013.

The proposed transaction, which is expected to be closed during the first quarter of 2013, becomes increasingly accretive to Solta Medical's quarterly earnings within twelve months.

Sound Surgical Technologies CEO Daniel Goldberger said; "We believe that by combining our sales organisation with Solta's, we will enhance market penetration of our highly differentiated technologies with plastic surgeons and dermatologists."

Sound Surgical's other product lines used in surgical body shaping applications include VASERsmooth, PowerX and Origins.