Syneron Medical Ltd. of Yokneam, Israel, specializing in development marketing and sales of medical aesthetic devices, has successfully merged with Candela Corporation of Wayland, MA, which develops medical and aesthetic laser-based technologies and systems. According to a Syneron press release, the completion of the merger followed the special meeting held Jan. 5, during which Candela shareholders voted in favor of the merger. Both companies' boards had already approved the merger.

Lou Scafuri, Chief Executive Officer of Syneron, commented, "We are very pleased to successfully complete the merger with Candela, representing the execution of our strategy to expand our product portfolio with synergistic and innovative technologies. The combination of Candela and Syneron creates the largest aesthetic medical device company, with an unparalleled global distribution footprint and a balanced mix of core and non-core physician customers that vastly enhances our competitive position. We believe there is tremendous opportunity to drive long-term growth and market leadership over the next several years."

Under the merger agreement, Candela shareholders will receive 0.2911 ordinary shares of Syneron for each share of Candela common stock they own. Syneron will issue approximately 6.7 million shares to acquire Candela. When the transaction is complete, Syneron shareholders will own about 80 percent of the combined company, and Candela shareholders 20 percent. Both companies will maintain their corporate offices in Israel and Massachusetts, as well as other offices.

However, the news about the merger may be muted somewhat by a simultaneous announcement from Palomar Medical Technologies, Inc. of Burlington, MA that it has restarted its patent infringement suits against both Candela and Syneron. Palomar previously alleged that Candela willfully infringed against Palomar's U.S Patent No. 5,735,844 ("the '844 patent"), as well as U.S. Patent No. 5,595,568 ("the '568 patent"). Palomar researches and develops light-based systems for cosmetic treatments.

Palomar's lawsuits against Candela and Syneron were stayed by the Court after requests were made for reexaminations of the patents in question. As stated in Palomar's motions to reopen the cases, the U.S. Patent Office ruled that most of the claims were valid and patentable. Judge Rya W. Zobel of the United States District Court, District of Massachusetts granted the motion to reopen in both cases.

Chief Executive Officer Joseph P. Caruso commented in the Palomar press release, "We are looking forward to moving forward on both of these lawsuits. We have confidence in the strength of these patents, and given our recent success in the reexaminations of these patents, we believe we are in an even stronger position now for trial."

Patricia Davis, Palomar's General Counsel and a registered patent attorney, commented, "The next step in both cases is to meet with the Court and set a schedule. Our case against Candela is very far along and we will request a trial date as soon as possible. We hope to have a trial in 2010."

Syneron's products include LipoLite, VelaShape II, eMatrix, eMax, eLaser, eLight, FacialH2O and SynerCool.

Candela's products include AlexTriVantage, GentleLASE, GentleMAX, GentleYAG, QuadraLASE, SmoothBeam, VBeam, and DCD.

Palomar's products include StarLux 500, 40 Watt Aspire SlimLipo Body Sculpting Laser, Starlux 300 Laser and Pulsed Light Platform, MediLux Pulsed Light Platform, Q-YAG 5 Laser, and the SINON Ruby Laser.

Adapted in part from press releases from Syneron and Palomar.

Read more details:

The Syneron press release: http://www.easyir.com/easyir/prssrel.do?easyirid=256C4E86057F2703&version=live&prid=573790

The Palomar press release: http://phx.corporate-ir.net/phoenix.zhtml?c=96490&p=irol-newsArticle&ID=1370993&highlight=

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