Israeli start-up Light Instruments is developing a laser dental care device. Syneron's market cap reached $975 million yesterday.
11 months after its IPO, aesthetic treatment equipment maker Syneron Medical Ltd. (Nasdaq:ELOS) is making its first investment as a public company. As its share price soared to $39.89, reflecting a market cap of $975 million, Syneron yesterday announced that it would invest $1.5 million in Israeli start-up Light Instruments Ltd., a developer of a laser dental care device.
Syneron will invest in Light Instruments in two stages. It will initially invest $750,000 unconditionally. It will invest the remaining amount only if Light Instruments' prototype laser system meets the necessary technical and clinical specifications. Syneron will also receive an option to invest an additional $2 million in Light Instruments. Under the investment agreement between the two companies, Syneron will have exclusive marketing rights to Light Instruments' device in North America for ten years following US Food and Drug Administration (FDA) approval.
Recently founded, Light Instruments has four or five employees.
Syneron currently has $105 million in cash, including short-term investments. It is expected to post $20 million in revenue for the second quarter, reflecting 8% quarterly growth.
Published by Globes [online], Israel business news - www.globes.co.il - on July 6, 2005