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TICKERS: SOLY

AbbVie's Allergan Aesthetics to Acquire Soliton for $550 Million

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Soliton Inc. shares traded 25% higher after the company reported it had agreed to be acquired by AbbVie Inc.'s Allergan Aesthetics for $22.60 per share in an all cash transaction.

Aesthetic medical device company Soliton Inc. (SOLY:NASDAQ) and Allergan Aesthetics, an AbbVie Inc. company (ABBV:NYSE), today announced that the two companies entered into a definitive agreement whereby "Allergan Aesthetics will acquire Soliton and RESONIC™, its Rapid Acoustic Pulse device that recently received U.S. Food and Drug Administration (FDA) 510(k) clearance and is a non-invasive treatment for the short-term improvement in the appearance of cellulite."

The announcement noted that the addition of Soliton together with its Rapid Acoustic Pulse technology used for improving appearance of cellulite will serve to expand and complement Allergan Aesthetics' Body Contouring treatment portfolio, which includes the CoolSculpting® Elite line of products and services.

Soliton explained that "its novel platform technology uses non-invasive rapid, high-frequency sound waves to disrupt targeted cellular structures and connective tissue, physically impacting the fibrous septae beneath the skin that contribute to the dimpled appearance of cellulite." The firm noted that it reported to the FDA that 92.9% of patient subjects who received just one treatment session using RESONIC in a clinical trial had agreed, or agreed strongly that they saw a noticeable improvement in their cellulite.

The company stated that in addition for uses to treat cellulite, RESONIC has demonstrated positive clinical results in fibrotic scars and has been granted FDA 510(k) clearance for use in conjunction with the use of lasers in unwanted tattoo removal.

Allergan Aesthetics' President and Senior VP of AbbVie Carrie Strom commented, "There is a huge unmet need to address cellulite and effective treatments have been elusive and frustrating for consumers...Soliton's technology offers a new, completely non-invasive approach with clinically-proven results to reduce the appearance of cellulite with no patient downtime. The addition of this technology complements Allergan Aesthetics' portfolio of body contouring treatments. Health care providers will now have another option to address consumers' aesthetic concerns."

Soliton's Executive Chairman Walter Klemp remarked, "Allergan Aesthetics' brand recognition, global footprint, track record and commitment to developing best-in-class aesthetic treatments makes the Company ideally suited to maximize the commercial potential of the RESONIC rapid acoustic™ pulse technology...I am proud of the passion and accomplishments of the Soliton team and thankful for the ongoing support of our investors which have culminated in this transaction. We look forward to working with Allergan Aesthetics to ensure a successful completion of this transaction."

The firms indicated that according to the terms of the transaction, Allergan Aesthetics has agreed to pay Soliton shareholders $22.60 in cash per outstanding share. The report noted that each of the company's respective Boards of Directors have already approved the transaction, which equates to an enterprise value for Soliton of approximately $550 million. The companies advised that the transaction remains subject to approval by Soliton's shareholders along with ordinary closing conditions and regulatory approval under the U.S. Hart-Scott-Rodino Act.

AbbVie is a global biopharmaceutical and healthcare company based in North Chicago, Ill., with a market cap of greater than $200 billion. The company's products address numerous therapeutic areas including eye care, gastroenterology, immunology, neuroscience, oncology, virology and women's health in addition to its Allergan Aesthetics portfolio, which includes body contouring, facial injectables, plastics, skin care and more.

Soliton is based in Houston, Tex., and describes its business as "a medical device company with a novel and proprietary platform technology licensed from The University of Texas on behalf of MD Anderson Cancer Center." The firm advised that its first FDA cleared commercial product employs rapid pulses of acoustic shockwaves as an accessory to laser procedures to remove tattoos and treat cellulite. The company believes the "'Soliton' method has the potential to lower tattoo removal costs for patients, while increasing profitability to practitioners, compared to current laser removal methods."

Soliton started off the day with a market capitalization of around $384.50 million with approximately 21.36 million shares outstanding and a short interest of about 7.5%. SOLY shares opened 25% higher today at $0.00 (+$22.55, +25.28%) over Friday's $18.00 closing price and reached a new 52-week high price this morning of $22.55. The stock has traded today between $22.15 and $22.55 per share and is currently trading at $22.45 (+$4.45, +24.72%).

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