MONTGOMERYVILLE, Pa.--(BUSINESS WIRE)--PhotoMedex, Inc. (Nasdaq: PHMD), a leader in the development of proprietary excimer lasers and a broad range of products for other dermatological applications, today announced the closing of the acquisition of Photo Therapeutics Limited. Under the terms of the agreement the initial purchase price of $13 million was paid at closing, and up to an additional $7 million of consideration will be paid to the sellers if certain gross profit milestones are met by Photo Therapeutics between July 1, 2008 and June 30, 2009, subject to customary adjustments. The acquisition was funded through a convertible debt investment of $18 million by an investment fund managed by Perseus, L.L.C., which financed the $13 million purchase price of the acquisition, and a further $5 million in working capital at the closing of the acquisition. Under the terms of Perseus’ investment, Perseus will make up to an additional $7 million convertible debt investment in PhotoMedex in the event the additional consideration is payable under the terms of the Photo Therapeutics acquisition. After the payment of approximately $2 million of transaction expenses associated with the acquisition and Perseus investment, the Company will have approximately $3 million remaining for use as working capital.
