Medical devices maker Cutera Inc ( CUTR ) recently cut an asset purchase deal with California-based laser systems and delivery devices maker IRIDEX Corporation ( IRIX ). Under the deal, Cutera has agreed to acquire specific aesthetic laser assets of IRIDEX for roughly $5.1 million.
The transaction, which has been cleared by the Boards of both companies, is expected to complete in early 2012. Cutera expects to finance 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 will bolster Cutera's foothold in the vascular aesthetic market.
The acquisition adds IRIDEX's portable VariLite dual wavelength system 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 pact, 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 recently 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 q uarter. Cutera expects to unveil full results for the quarter on February 13.