Thermage turns down unsolicited offer in favor of deal with Reliant Technologies

By Lisa Kerner

Charlotte, N.C., Sept. 4 - Thermage, Inc.'s board of directors rejected the previously announced unsolicited, non-binding proposal to acquire the company for $5.50 per share.

The company also will not enter into discussions with the unnamed third party regarding its alternative proposal and will continue to move forward with its pending Reliant Technologies, Inc. merger.

"We believe the proposed merger with Reliant will provide significantly greater value to Thermage stockholders," Thermage chairman and chief executive officer Stephen J. Fanning said in a company news release. "Our board believes that the Reliant transaction will enable the company to establish a global leadership position in the aesthetic device industry."

In July Thermage announced a definitive agreement to acquire privately held Reliant in a stock and cash transaction valued at approximately $95 million.

Reliant shareholders will receive a total of approximately $25 million in cash and 23.6 million shares of Thermage common stock under the agreement, it was previously reported.

Thermage said it will also assume up to $7 million of net debt and provide $5 million in bridge financing to Reliant.

Hayward, Calif.-based Thermage provides a non-invasive procedure to tighten and contour skin.

Reliant develops clinical solutions to repair and restore aging and damaged skin. The company is based in Mountain View, Calif.

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