Transaction Valued at Approximately $95 Million
Combines Two of the Most Recognized Brands in Aesthetics
Acquisition Expected to be Accretive to Thermage 2009 EPS
Conference Call Scheduled for Today at 11:00 a.m. Eastern Time
HAYWARD, Calif. and MOUNTAIN VIEW, Calif., July 7 /PRNewswire-FirstCall/ -- Thermage, Inc. (Nasdaq: THRM), a leader in non- invasive tissue tightening, and Reliant Technologies Inc., a privately held leader in skin resurfacing and rejuvenation through its Fraxel(TM) line of products, announced today that they have entered into a definitive merger agreement under which Thermage will acquire Reliant in a stock and cash transaction valued at approximately $95 million, based upon the closing price of Thermage common stock on July 3, 2008. The proposed transaction would combine market leaders in skin tightening and skin resurfacing, the two fastest growing segments of the industry. Thermage and Reliant generated nearly $137 million in revenue on a combined basis for the 12 months ended March 31, 2008. The transaction is expected to create cross selling opportunities in the domestic and international markets. The combined company will have a broad global footprint, will address a wider range of skin conditions and continue to maintain a high consumable component in the revenue mix. Annualized cost savings resulting from the combination are expected to be approximately $14 million and the transaction is expected to be accretive to current consensus analysts' estimates for 2009 of $0.26 per diluted share. In addition, Thermage today reported that second quarter revenue is expected to be between $17.7 and $17.9 million.
The Boards of Directors for both companies have app
|SOURCE Thermage, Inc.|
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