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
For further information, please contact:
Peter Ejemyr, Group VP Corporate Communications.
Tel: +46 733 611 000 (mobile), e-mail: firstname.lastname@example.org
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.
Elekta is an international medical technology group, providing oncologists, radiation therapists, neurosurgeons and many other medical specialists with state of the art tools to fight serious disease.
Elekta provides advanced clinical solutions, comprehensive management and information systems as well as services for improved cancer care and management of brain disorders.
Elekta’s systems and solutions are used in over 4,500 hospitals around the world. Clinical and information management solutions include, among others, Leksell Gamma Knife® for non-invasive treatment of brain disorders, Elekta Axesse™ and Elekta Synergy® for stereotactic and image guided radiation therapy and radiosurgery as well as the MOSAIQ™ suite of software for image-enabled EMR and efficient management of clinical and patient data.
With over 2,000 employees globally, the corporate headquarter is located in Stockholm, Sweden and the company is listed on the Nordic Exchange under the ticker EKTAb. More information about Elekta can be found at www.elekta.com.
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