Press Release Stockholm, Sweden, March 4, 2008 The international medical technology group Elekta AB (publ) (STO: EKTAb) today announced the completion of its announced acquisition of CMS, Inc. for total cash consideration representing an enterprise value of USD 75 M.
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.
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 and management of images and information. CMS’s large, highly competent sales, marketing, product creation and support organizations will provide added resources and expertise to enable Elekta to accelerate the development of new cancer treatment solutions and bring these tools to market more quickly and effectively.
From a financial reporting perspective CMS will be consolidated into Elekta’s accounts as of March 4, 2008.
As previously communicated, 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