After rolling out its medical devices commercially last week, Houston-based Soliton Inc. (Nasdaq: SOLY) announced May 10 that it is being acquired.
Soliton, which develops an aesthetic-focused medical device for tattoo removal and cellulite treatment, will be acquired by Allergan Aesthetics, an AbbVie company. Allergan Aesthetics will pay $22.60 per share in cash for each outstanding share of Soliton, bringing the enterprise value of the transaction to approximately $550 million.
The deal comes just a few months after Brad Hauser was named Soliton's president and CEO in November. Hauser most recently served as vice president of research and development and general manager for CoolSculpting at Allergan Aesthetics since its acquisition of Zeltiq Aesthetics Inc. in 2017. In addition to CoolSculpting, Allergan Aesthetics is known for brands such as Botox, Juvéderm and more.
The deal includes Soliton's rapid acoustic pulse medical device, branded as Resonic.
"Allergan Aesthetics' brand recognition, global footprint, track record and commitment to developing best-in-class aesthetic treatments makes the company ideally suited to maximize the commercial potential of the Resonic rapid acoustic pulse technology," said Walter Klemp, executive chairman at Soliton. "I am proud of the passion and accomplishments of the Soliton team and thankful for the ongoing support of our investors, which have culminated in this transaction. We look forward to working with Allergan Aesthetics to ensure a successful completion of this transaction."
Soliton announced the commercial launch of its Resonic devices on May 5. The Houston-based medical device company had received clearance from the U.S. Food and Drug Administration for use of its devices in the short-term improvement of the appearance of cellulite in March. Soliton had also received FDA clearance for the removal of tattoos using Resonic devices in 2019. The company had planned to roll out the devices to a select group of physicians during the second quarter.
Allergan Aesthetics' acquisition of Soliton and the Resonic brand "expands and complements" Allergan Aesthetics' body-contouring treatment portfolio, the company said.
"There is a huge unmet need to address cellulite, and effective treatments have been elusive and frustrating for consumers," said Carrie Strom, global president for Allergan Aesthetics and senior vice president at Chicago-based AbbVie (NYSE: ABBV). "Soliton's technology offers a new, completely non-invasive approach with clinically proven results to reduce the appearance of cellulite with no patient downtime."
Allergan Aesthetics' acquisition of Soliton is subject to customary closing conditions, including approval from Soliton shareholders. An expected timeline for the deal's closing was not provided.
After closing at $18 per share on Friday, May 7, Soliton's stock was trading around $22.30 per share, up over 23%, near midday on Monday, May 10, according to Yahoo Finance.
Soliton went public on the Nasdaq Capital Market in February 2019, when the company closed an initial public offering at $10.4 million.
This is at least the second local acquisition Allergan — formerly Actavis PLC — has made in less than four years. Before it was acquired by AbbVie in 2020, Allergan acquired The Woodlands-based Repros Therapeutics Inc., a company that develops drugs to treat male and female reproductive disorders. That deal was announced in December 2017.
