Fairness opinionsMedical Devices and Supplies2017

Syneron Medical / Candela acquired by Apax Partners: fairness opinion by Barclays

Announced April 3, 2017 · One-step merger · All cash · 6-K filed April 3, 2017
Medical Devices and Supplies Medical Devices Sponsor: Apax Partners (Apax IX USD L.P., Apax IX EUR L.P., Apax IX EUR Co-Investment L.P., Apax IX USD Co-Investment L.P.)
Enterprise value
$340M
EV / LTM EBITDA
16.8x
EBITDA $20.2M · 7% margin
EV / LTM revenue
1.14x
revenue $298M
DCF discount rate
15.5%–17.5%

Deal terms

ConsiderationAll cash
Price per share$11.00
Premium
Premium basis
StructureOne-step merger
Termination fee$13.9M
Reverse termination fee
Go-shop30 days · $6.0M reduced fee
Outside dateAugust 30, 2017
Filing6-K · EDGAR index

Opinion of Barclays to the target board

Delivered April 2, 2017

Filing (merger agreement only) states Barclays Capital Inc. is the Company's sole financial advisor/broker; no fee amounts disclosed in this document.

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Management projections

No projections are disclosed in this filing. The document is the executed Agreement and Plan of Merger; it notes only that Parent and Merger Sub received certain estimates, projections and forecasts from the Company in diligence, without any representation as to their accuracy.

Process notes

This 6-K exhibit is the merger agreement itself, not the proxy statement; the opinion-of-financial-advisor section is therefore absent. Section 3.26 states the Company received the opinion of Barclays Capital Inc., dated April 2, 2017, that the $11.00 per share Merger Consideration is fair, from a financial point of view, to holders of Ordinary Shares (other than Cancelled Shares). Israeli-law merger under the ICL (Companies Law 5759-1999) requiring 50-day Merger Proposal and 30-day post-approval statutory waiting periods. Includes a 30-day go-shop period (tolled April 11-17, 2017) with a reduced termination fee of $5.96 million for Excluded Party deals, versus a $13.91 million standard termination fee. Equity financing fully committed by Apax IX funds; a shareholder Voting Agreement was signed concurrently. Target markets aesthetic devices under the Syneron-Candela name.

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