Thermage to buy Reliant Technologies for $95 million

July 7 (Reuters) – Aesthetic medical device maker Thermage Inc (THRM.O: Quote, Profile, Research, Stock Buzz) said it would buy privately held Reliant Technologies Inc, a provider of cosmetic laser skin treatment, for about $95 million in cash and stock, sending its shares up as much as 10 percent.

The Hayward, California-based company said it expects the deal to add to its 2009 earnings and save $14 million annually. Analysts expect the company to earn 4 cents a share for 2009.

According to the deal, Thermage will pay $25 million in cash and 23.6 million of its shares to Reliant.

The company, which uses monopolar radio frequency in its procedures, will assume $7.0 million in debt from Reliant Technologies and provide $5 million as bridge financing.

Thermage said it expects to record various charges related to the deal in the fourth quarter, which is when the deal is expected to close.

The company also expects second quarter revenue to be between $17.7 million and $17.9 million.

“Combining with another market leader, a pioneer in the space of fractional skin resurfacing, improves our ability to leverage our current call point,” Mr. Fanning added. “Our products are complementary and are often used together. The combination of our technologies offers patients and physicians a more complete anti-aging solution. In addition to leveraging our current call point, the combination provides compelling opportunities to leverage our marketing resources targeting both physicians and consumers. We will have one of the largest U.S. sales forces in the industry and an extensive international distribution network. Our combined distribution strength will provide us with the ability to place systems with new customers, as well as drive sales of treatment tips to a worldwide installed base of more than 4,000 systems.”