Valeant Buying Solta Medical For About $250M
NEW YORK (AP) -- Valeant Pharmaceuticals International Inc. is buying Solta Medical Inc. for about $250 million.
Valeant will pay $2.92 per Solta share, which is a 40 percent premium to its Friday closing price of $2.09. Shares of Solta surged on the news Monday.
Solta makes medical device systems for aesthetic applications. In August, the Hayward, Calif., company announced that its CEO Steve Fanning would resign due to "unacceptable" 2013 results reported to date.
Some of Solta's products include the Thermage CPT system that uses radiofrequency energy for skin tightening and the Fraxel repair system, used during dermatological procedures that require ablation, coagulation and resurfacing of soft tissue.
"Solta's leading aesthetic devices are a natural fit with Valeant's facial injectables, professional skin care products and physician dispensed products and will establish Valeant in a strong leadership position as we continue to build our presence in the aesthetic market," Valeant Chairman and CEO Michael Pearson said in a statement.
Canadian-based Valeant anticipates the transaction immediately adding to its earnings per share once completed.
Solta's board unanimously approved the acquisition. The deal is expected to close in 2014's first quarter.
Solta shares rose 82 cents, or 39.2 percent, to $2.91 in morning trading Monday, while Valeant's stock added $1.99 to $108.82.