Botox maker Allergan has said it's acquiring Zeltiq Aesthetics and its technology for freezing away fat without surgery. The venture is believed to represent a huge market opportunity worldwide and a growing business.
Drug giant Allergan said Monday it was buying Zeltiq Aesthetics for $2.5 billion (2.36 billion euros), paying $56.50 for each share of Zeltiq and its CoolSculpting system, which essentially freezes away unwanted fat.
The patented cooling technology permits clients to experience "body contouring" without surgery.
"The venture represents a $4-billion market opportunity worldwide," said Allergan, which is headquartered in Ireland.
California-based Zeltiq Aesthetics applies intense cold to body areas, creating a sensation of numbness and involving no needles. The company insists patients can observe first changes after three weeks.
By adding the best-in-class body contouring to our best-in-class facial aesthetics, plastic surgery and regenerative medicine offerings, we are creating a world-class aesthetics business, Allergan Chief Executive Brent Saunders said in a statement.
The transaction needs approval by Zeltiq shareholders and is subject to regulatory review. Shares of Zeltiq jumped almost 13 percent in midday trading, while Allergan shares added close to 1 percent.
hg/sri (AP, AFP)