Laser manufacturers announce mergers

Adelaide, Australia-Ellex Medical Lasers Ltd., which designs and manufactures ophthalmic laser systems, has acquired Innovative Imaging Inc., a manufacturer of ophthalmic diagnostic ultrasound systems.

Innovative Imaging, which makes the I3 System commonly used by U.S. retinal specialists, generated $2.3 million in revenue during 2005.

Ellex paid an initial $1 million for the business, with provisions to make unspecified annual payments each of the first 3 years based on its performance.

Meanwhile, Iridex Corp. has agreed to acquire the laser aesthetics business of Laserscope to expand its dermatology franchise. The deal cost Iridex $26 million in cash and $2 million in unregistered shares of Iridex common stock. When the transaction closes, Iridex will acquire between $7.3 million and $9.5 million in net assets, including accounts receivable from Laserscope.

Iridex's president and chief executive officer, Barry Caldwell, said the aesthetics business generated $37.8 million in 2004 and $36.9 million in 2005. The Laserscope manufacturing systems will be integrated into unused capacity at the Iridex facility in Mountain View, CA.