Cynosure, Inc. (NASDAQ:CYNO) announced early on Tuesday morning [Feb 14, 2017 | 8:04am] that it had agreed to be acquired by Hologic, Inc. (NASDAQ:HOLX) for $1.65 billion in cash. The $66 per share deal price represents a 28% premium over CYNO’s Monday closing price of $51.50.

Written by StockNews.com

The transaction has been unanimously approved by the boards of directors of both companies. Hologic, whose existing businesses concentrate on diagnostics, medical imaging, and surgical products, noted the move will bolster its presence in the fast-growing aesthetics market.

Cynosure’s portfolio includes over 20 products across major categories, including non-invasive body contouring, hair removal, skin revitalization, and women’s health — a particular strength for Hologic. Cynosure’s products are currently sold in over 130 countries.

The takeover, which is expected to be completed by the end of April 2017, should be immediately accretive to HOLX’s earnings.

Hologic commented via press release:

“Acquiring Cynosure will accelerate our transformation into a higher-growth company by leveraging our core women’s health expertise and OB/GYN channel leadership into an adjacent, cash-pay segment that is expanding at a low double-digit rate,” said Steve MacMillan, Hologic’s Chairman, President and Chief Executive Officer (CEO). “We had identified medical aesthetics as an attractive and complementary growth opportunity through our strategic planning process, and are pleased to have agreed to acquire Cynosure, the best-in-class company in the space. Together, we can strengthen our shared focus on innovation, market-leading products with demonstrated clinical benefits, and strong customer relationships.”

Cynosure, Inc. shares surged $14.15 (+27.48%) to $65.65 in premarket trading Tuesday. Year-to-date, CYNO had gained 12.94% prior to today’s news, versus a 4.13% rise in the benchmark S&P 500 index during the same period. CYNO currently has a StockNews.com POWR Rating of B (Buy), and is ranked #56 of 122 stocks in the Medical – Devices & Equipment category.

Meanwhile, Hologic, Inc. shares fell $1.03 (-2.57%) in premarket trading Tuesday, as the market wasn’t too fond of the acquisition, at least initially. Year-to-date, HOLX has declined -0.25%. HOLX currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #9 of 122 stocks in the Medical – Devices & Equipment category.