Cutera Wraps Up IRIDEX Buy - Analyst Blog
Medical devices maker Cutera Inc. ( CUTR ) has closed its recently announced acquisition of the specific aesthetic laser assets of California-based laser systems and delivery devices maker IRIDEX Corporation ( IRIX ) for roughly $5.1 million. The company struck a deal to buy these assets in January 2012. Cutera financed the deal using its available cash resources.
Both Cutera and IRIDEX currently serves the roughly $1 billion worldwide aesthetic market. The acquisition of IRIDEX's aesthetic assets allows Cutera to bolster its foothold in the vascular aesthetic market.
The acquisition adds IRIDEX's portable VariLite dual wavelength system (a solid state laser for treating vascular, pigmentation and cutaneous lesions) to Cutera's vascular laser product range (includes the Excel V laser), enabling the company to offer physicians a comprehensive suite of solutions for treating a broad spectrum of vascular aesthetic indications.
Under the asset purchase deal, IRIDEX has agreed to provide Cutera with transitional product and service support. The divestiture of its aesthetic laser assets to Cutera will allow the company to refocus on the core ophthalmology opportunity, which is critical for its future growth.
Cutera develops and markets laser aesthetics systems for physicians and qualified practitioners globally and offers its products under three platforms, such as, Solera, Xeo and CoolGlide. The company markets its products through a direct sales force and distributors. Cutera competes with Cynosure Inc. ( CYNO ), Palomar Medical Technologies ( PMTI ) and Syneron Medical Ltd. ( ELOS ) among others.
Cutera, in January 2012, announced fourth-quarter 2011 preliminary revenues of roughly $18 million. The company noted that it has maintained double-digit sales growth for the third consecutive quarter. Cutera expects to unveil full results for the quarter on February 13.
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