Why DS Healthcare was so eager to purchase Radiancy from PhotoMedex
In an attempt to expand and strengthen its technological platform, geographic reach, and go-to-market channels, DS Healthcare Group, Inc. announced its agreement to acquire leading developer of consumer medical devices Radiancy, Inc. from PhotoMedex Inc. for $48 million.
Pompano, Fla.-based DS Healthare will also purchase the Neova dermatological products business in a transaction structured in two reverse triangular mergers, with a non-dilutive provision.
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Meanwhile, PhotoMedex CEO Dolev Rafaeli believes the agreement provides an opportunity for the company to recoup significant value from its operating assets within the next three years.
Each company’s board of directors voted unanimously in favor of the transaction, although it still requires regulatory and shareholder approval.
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Holders of approximately 24 percent of the common stock of DS Healthcare and approximately 17 percent of the common stock of PhotoMedex have agreed to vote their shares in favor of the merger, which is currently expected to close in the second quarter of 2016.
These valuable assets, combined with DS Healthcare’s innovative research and development platform, will form a global company with a comprehensive product portfolio of both medical devices and topical formulations, which are anticipated to bring rapid revenue growth.
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“I believe that this transformative acquisition creates one powerfully innovative company with unparalleled capabilities and industry leading technologies,” said DS Healthcare CEO Renee Barch-Niles. “The combined scope and scale make us a more strategic business partner to our customers.
The new infrastructure has an ideal fit with DS Healthcare’s disruptive product development expertise and adds another dimension with breakthrough proprietary and patented phototherapy expertise which includes LHE (Light and Heat Energy) and Thermicon technology. Existing and new customers will have immediate access to this expansive, high-performance infrastructure.