Lumenis Ltd., based in Israel, said Thursday that it has executed a definitive purchase agreement to acquire HGM Medical Laser Systems Inc., a Salt Lake City developer and manufacturer of medical laser devices.
The deal is for $9.7 million in cash. The transaction includes the purchase of a 50,000-square-foot facility valued at about $2.5 million. Lumenis expects to close the transaction before the end of 2001.
Lumenis formerly was known as ESC Medical Systems Ltd. and was formed by the union between ESC Medical Systems and Coherent Medical Group. The company develops, manufactures and markets proprietary laser and pulsed-light devices.
HGM has been marketing laser and delivery systems primarily to the ophthalmology market since the early 1980s. The company has about 7,000 lasers installed around the world. Fiscal year 2000 sales were about $7.8 million, with net income of $860,000.
Jim Shipman, HGM's chief executive officer and president during 2000, will continue to manage the Salt Lake facilities and nearly 100 employees.