Investors in PhotoMedex Inc (NASDAQ:PHMD) are having a great day. Shares of the skin health company are up nearly 27% in the wake of the news that health marketing and branding company CTV Brands has signed a definitive agreement to acquire the consumer products business of PhotoMedex for a total consideration of $9.5 million.

The agreement calls for ICTV to acquire the assets of PhotoMedex’s flagship product no!no!, along with the Kyrobak and Cleartouch brands. The purchase price of $9.5 million consists of a $3 million cash payment on closing, $2 million cash payment due on the 90th day following the closing, and a $4.5 million capped royalty based on future net sales of the acquired product lines. This asset purchase will include the respective product trademarks, patents, and other intellectual property, along with manufacturing tooling, and PhotoMedex’s Hong Kong and Brazilian subsidiaries. ICTV will also receive a minimum of $6 million of GAAP inventory.

The Board of Directors of both ICTV and PhotoMedex have unanimously approved this agreement. The transaction is expected to close in the 4th quarter of 2016.

Richard Ransom, President of ICTV Brands, stated, “The acquisition of the no!no! brand will be transformative to our organization and accretive to our shareholders. By combining these great brands under one platform, ICTV should gain the operating leverage and cost savings to generate significant EBITDA and cash flow going forward. We believe this transaction will firmly establish ICTV Brands as a worldwide leader in the health and beauty device industry.”

ICTV Brands’ Chairman and CEO Kelvin Claney added, “Over the last two years, we have repositioned ICTV to take full advantage of the rapid expansion of the digital marketplace. Our team has built and continues to refine a multi-channel sales platform to deliver profitable sales of health and beauty products across all methods of distribution, including e-commerce, traditional brick and mortar, direct to consumer, live home shopping, and international distributorships. The timing of the acquisition of no!no! and the associated brands is perfect, as it will allow ICTV to accelerate growth through the Company’s new multi-channel sales platform. Through operational efficiencies, I believe the synergies created by these two great brands, no!no! and DermaWand, will generate significant growth and earnings both now and in future years.” (Original Source)

PhotoMedex, Inc. is a global health products and services company, which provides integrated disease management and aesthetic solutions to dermatologists, professional aestheticians and consumers. It provides proprietary products and services that address skin diseases and conditions including psoriasis, vitiligo, acne and photo damage. The company operates through three segments: Consumer, Physician Recurring and Professional.