DS Healthcare Group is to acquire Radiancy, a developer of consumer medical devices and the Neova dermatological products business from PhotoMedex, in a transaction structured in two reverse triangular mergers, with a non-dilutive provision.
The board of directors of both companies have voted unanimously in favour of the transaction. The transaction is subject to customary closing conditions, including shareholder approval and regulatory approvals. Holders of approximately 24 per cent of the common stock of DS Healthcare and approximately 17% 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.
“I believe that this transformative acquisition creates one powerfully innovative company with unparalleled capabilities and industry leading technologies,” says Renee Barch-Niles, DS Healthcare’s Chief Executive Officer. “The combined scope and scale make us a more strategic business partner to our customers. We will leverage our global distribution channels with a product portfolio that is broader than any other market competitor in our space. And we are pleased that the deal structure aligns the incentives of everyone involved allowing for the greatest value creation for our collective shareholders.”
The transaction significantly expands and strengthens DS Healthcare’s technological platform, geographic reach, and go-to-market channels. 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.