Thermage Inc., has finalized the stock and cash purchase of Reliant Technologies for an estimated combined value of $66.2 million.
Reliant Technologies was previously the distributor of the Fraxel laser, a facial rejuvenation device that helps to tighten up the skin, increase collagen production and reduce the appearance of acne scars and age spots.
The Fraxel laser, along with Reliant Technologies' suite of products are now officially under new ownership with this recent merger.
The deal was closed on January 7, 2009 in California, and Thermage now has full control over the distribution and use of the Fraxel treatment device.
In the preliminary stages of the merger, Stephen J. Fanning, Chairman of the Board, President and CEO of Thermage stated that:
"This proposed transaction combines two of the most dynamic companies in our industry and creates a strong growth vehicle for our shareholders, customers and employees... Thermage and Reliant Technologies each have highly recognized and valued brand names in our industry. By combining our companies, we will be extremely well positioned to develop significant cross-selling opportunities as well as benefit from two business models that have significant consumable revenue. As a result, we expect the combination of the two companies to be accretive to our existing shareholders." (Source: Fraxel.com press release)
Thermage is best known for its non-invasive skin tightening treatments that use radiofrequency technology to heat up the skin and help create a smoother appearance. Thermage for the Face and Thermage for the Body have become increasingly popular in recent years, as more people look for ways to get rid of cellulite, lose body fat and acheive a sculpted appearance without surgery.
Fraxel treatments are also leaders in the market, serving as one of the most asked-for skin resurfacing treatments. Fraxel is often recommended for patients who want to get rid of acne scars, freshen up the skin and diminish the signs of aging.