Healthcare Professionals - International
 
 

Elekta signs agreement to acquire CMS

Stockholm, Sweden, February 18, 2008

Elekta AB (publ) (STO:EKTAb) a world leader in clinical solutions for radiation therapy and radiosurgery, today announced that it has signed a purchase agreement to acquire CMS Inc. for a total cash consideration representing an enterprise value of USD 75 M. Closing of the transaction is expected in March.

CMS is a worldwide leader in the development, sales and support of advanced radiation therapy planning solutions, supporting over 1,500 sites in clinical operation throughout the world.

“I am very pleased that the process to acquire CMS is proceeding according to plan” commented Tomas Puusepp, President & CEO of Elekta. “The people, products and market position of CMS are highly complementary to Elekta’s corporate structure, technology portfolio and R&D roadmap. Both Elekta’s and CMS customers will benefit from our combined strength in product development and support.”

CMS, with several leading solutions in clinical use and a strong pipeline of advanced functionality in development, will significantly contribute to Elekta’s strategy in radiation therapy planning. CMS’s large, highly competent sales, marketing, product creation and support organizations will enable Elekta to accelerate the development of new solutions and bring these to market more quickly and effectively.

CMS is also the market leader in treatment planning for proton therapy with eight installations in clinical use. Integrating these solutions with the MOSAIQ™ information management system will reinforce Elekta’s leadership in software systems for proton therapy facilities and strengthen the collaboration between Elekta and its current partners in this area.

Updated projections of the financial effects of the transaction

CMS is based in St Louis, Missouri and is owned primarily by a private equity fund, managed by the US investment bank Brown Brothers Harriman. The company has 300 employees worldwide. In fiscal year 2007 (ending September), the company grew its order intake by 21 percent to USD 61 M.

Based on a preliminary purchase price allocation together with a conservative estimation of revenue synergies, Elekta’s management expect the acquisition to result in:

  • Accretion to earnings on a cash basis in fiscal year 2008/09 and onwards
  • Neutral effect on EPS in fiscal year 2008/09 and accretion thereafter
  • Accelerated revenue growth, but with modest group effect given the size of the acquired business
  • Preserved balance sheet strength and financial flexibility


About CMS

CMS is a worldwide leader in the development and support of radiation treatment planning and workflow management solutions. With treatment planning systems installed in more than 1,500 sites worldwide, CMS is a global resource to the radiation oncology community. A privately held corporation, CMS employs 300 professionals in its headquarters located in St. Louis, MO and regional offices in Tampa, Florida; Freiburg, Germany; Tokyo, Japan; Sydney, Australia; and Shanghai, China. More information about CMS can be found at www.cmsrtp.com .


About Elekta

Elekta is an international medical-technology Group, providing meaningful clinical solutions, comprehensive information systems and services for improved cancer care and management of brain disorders. All of Elekta’s solutions employ non-invasive or minimally invasive techniques and are therefore clinically effective, gentle on the patient and cost-effective.

Clinical solutions include among others Leksell Gamma Knife® for non-invasive treatment of brain disorders and Elekta Synergy® for image guided radiation therapy (IGRT ). Following the acquisition of IMPAC Medical Systems Inc. in April 2005, the Elekta Group is the world’s largest supplier of oncology software.

Elekta’s systems and solutions are used at over 4,000 hospitals around the world to treat cancer and manage clinical operations as well as to diagnose and treat brain disorders, including tumors, vascular malformations and functional disorders.

With approx. 2,000 employees, Elekta’s corporate headquarter is located in Stockholm, Sweden and the company is listed on the Stockholm Stock Exchange under the ticker EKTAb. For more information about Elekta, please click here.


For further information, please contact:

Investor Enquiries:

Peter Ejemyr, Group VP Corporate Communications.
Tel: +46 733 611 000 (mobile), e-mail: peter.ejemyr@elekta.com


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